In the morning and then in the afternoon, the yellowish metal gained value to notch prices not seen before as the debt ceiling debate between Republicans and Democrats in Washington shows "little prospects for compromise," Reuters reports. Gold futures' record price now is $1,624.30 per troy ounce.
"No matter what the ratings agency says, no matter what anybody says, people think the U.S. government is going to be good for it," managing director Stephen Massocca of Wedbush Morgan in San Francisco told Reuters. "And ultimately people think there will be some sort of Band-Aid slapped on this at a minimum."
At 2:47 p.m. on Monday, gold futures increased 0.74 percent, an $11.90 cent gain to $1,613.40 per troy ounce.
If political leaders cannot achieve a compromise, the repercussions could be quite severe, Reuters reports. Among the peril the U.S. faces is a default, having its high credit rating reduced and causing serious threats to the stability of markets throughout the world.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.