logo
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

 


Gold Joins the Equity and Oil Rally on D.C. Budget Deal

By  +Follow October 16, 2013 8:35AM
Share:

Gold prices rebounded after a slight dip in early trading on Wednesday, after US politicians announced an agreement to end over two weeks of truncated government, and barely avoid a default on the nation’s debts.

Yellow metal slated for December delivery had advanced 0.62 percent to $1,281.10 per ounce ahead of the closing bell on New York's COMEX, extending the rally into its fourth day. The seeming impossibility of a deal to raise the debt ceiling and reopen vital government services that had characterized the most recent impasse right up to the Wednesday morning announcement had allowed gold, however briefly, to resume its role as a safe haven during times of uncertainty.

If the last three days saw the metal higher as a result of potential calamity, Lido Isle Advisers president Jason Rotman explained Wednesday’s movement as technical, saying “We believe gold may be finding some buyers here below $1,300, and would not be surprised to see a rally back toward the key $1,300 level, mainly on technical buying.”

The Senate deal that is likely to be voted on by congress on Wednesday is expected to extend the US borrowing limit until February and fund the government through January of 2014. It is a temporary fix that could leave enough uncertainty lying around to provide some price support for gold in the coming months. At the same time, the debt-limit delay is likely to push the formerly dreaded tapering of federal stimulus off until such time as the situation can be solved in a more permanent manner, and giving investors more incentive to move into riskier assets.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer


Liked What You Read? Join Equities.com and Connect With Your Favorite Financial Experts FOR FREE! Members of Equities.com gain access to our leading financial news and content, active social investment community, proprietary research tools including the 2014 Small-Cap Stars, E.V.A. reports and more.

By  +Follow October 16, 2013 8:35AM
Share:

Comments

 

blog comments powered by Disqus

 

 Today's Must Reads

Microsegmentation: The Future of Cybersecurity?


How this Playboy Playmate Became a Better Stock Trader Than You

Long Term Rates Are On The Up…What’s Next?

The Modern Web: So Many Ways to Invest in Wireless Mobile Stocks

It's Time for the Rest of the Country to Legalize Weed

 

Do you expect a 10% correction by the end of 2015? in Equities.com Polls on LockerDome

About us

Equities.com is an advanced financial data portal and social network designed to connect self-directed investors with the world’s most innovative startup and small cap companies. Through our in-depth coverage of small cap markets, comprehensive research and stock valuation reports, state of the art issuer products, and world class events, Equities.com provides the social tools and insight that drive tomorrow’s investment relationships and opportunities.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.

Login or Register

LOG IN