Tuesday, 22 October 2013 00:07
-
- {{hitsCtrl.values.hits}}
Reuters: Gold held near one-and-a-half-week highs above $1,300 an ounce on Monday, supported by expectations the Federal Reserve would hold off curbing its economic stimulus while the United States eyes a more lasting fix to its budget problems.
Gold posted its best weekly gain in two months last week after U.S. lawmakers reached a last-minute deal that averted a debt default and reopened government agencies that were shut for 16 days.
Spot gold had risen 0.1% to $1,317.39 an ounce by 0046 GMT. The metal touched $1,325.21 on Friday, its highest since October 8. It rose 3.4% last week.
U.S. gold futures edged up 0.2% to $1,317.50 an ounce.
The U.S. budget deal extends the U.S. government’s borrowing authority through February 7 and restores federal funding through January 15, suggesting a similar crisis may happen again unless Congress comes up with a permanent solution.
Spot gold surged 3% when the deal was announced on October 17 on hopes the temporary fix would allow the Fed to delay its planned stimulus tapering. Top Fed officials have suggested that any decision to trim the monthly bond purchases will be likely deferred until at least December.
Goldman Sachs maintained its end-2014 gold price target of $1,050 an ounce, saying the precious metal is still waiting for data confirmation of a U.S. rebound that can support tapering even as the lack of a lasting U.S. resolution could delay tapering.
