Gold News & Info

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold jumped 1.2% to close above $1,325 as the stalemate over the U.S. budget and debt limit deepened, increasing the possibility of default and stoking demand for safe-haven assets. House Speaker John Boehner dug in, declaring that the House will not raise the debt-ceiling without first securing a package of spending cuts. President Obama reiterated that he will not negotiate the budget under threat of what he views to be fiscal blackmail. If the limit is not raised before October 17, the U.S. may be forced to default on its debt obligations, resulting in "a financial crisis and recession" that would echo "the events of 2008," according to a U.S. Treasury warning last week.

With nervous investors shedding risk, the Dow and S&P 500 slid further into two-week losing streaks, dropping nearly 1% each. Treasury prices rose alongside gold and silver while the dollar fell to a two-month low against the yen. A weaker dollar supports higher prices for precious metals prices becuase they are denominated in dollars internationally and become less expensive to holders of other currencies. Silver surged 2.9% while platinum and palladium rose 1% and 0.5%, respectively.

At the Comex close: December gold jumped $15.20 to $1,325.10; December silver surged 63 cents to $22.39; January platinum rose by $13.90 to $1,401.90; and December palladium added $3.40, to $705.35 an ounce.