Gold prices rise on concern about Washington budget stalemate
Gold prices on Wednesday morning rose for the first time in four trading sessions on mounting concern that U.S. budget negotiations will collapse and lead to a government shutdown.
Gold futures for delivery in December were up 0.6% to $1,324.70 an ounce on the Comex in New York. The price declined 3.9% in the previous three sessions.
“Worries about the U.S. government shutting down are pushing people to gold,” Phil Streible, a senior commodity broker at R.J. O’Brien & Associates in Chicago, told Bloomberg News.
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Concerns about a stalemate in Washington have triggered huge rises in precious metals in the past. Gold reached a record $1,923.70 on Sept. 6, 2011, as investors flocked to the metal because of concerns about raising the debt ceiling.
Through Tuesday, gold was down 21% this year as some investors lost faith in the metal amid low inflation and a stock-market rally that sent equity indexes to record highs.
Silver was also rising Wednesday, with futures for December delivery up 0.8% to $21.765 an ounce on the Comex. Silver had tumbled 7.3% in the previous three sessions.
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