Gold Futures Rise to $1,278.50 as Debt Deal Announced

Oct. 16, 2013 05:15AM PST

Gold prices increased slightly Oct. 16 as U.S. lawmakers announced they had reached a deal to avoid default.

Gold prices increased slightly Oct. 16 as U.S. lawmakers announced they had reached a deal to avoid default. The government has until tomorrow to increase the debt ceiling.

Gold futures for December delivery were up $5.30 to $1,278.50 an ounce on the Comex in New York, The Wall Street Journal reported. Before the deal spot gold prices lost $7.63, getting dragged down $1,272.401 an ounce; however at time of writing spot gold was up to $1,281.20.

Investors are closely watching lawmakers’ moves in Washington.

“The market continues to trade on an expectation of a settlement,” said Peter Hug, global trading director with Kitco Metals Inc., in a note to clients.

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