Investing.com - Gold prices rose on Monday after a fiscal deadlock in the U.S. Congress threatened to send the government into default possibly later this week, which weakened the dollar.
Gold and the dollar tend to trade inversely with one another.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,276.10 during U.S. afternoon hours, up 0.62%.
Gold prices hit a session low of USD1,268.50 a troy ounce and high of USD1,289.70 a troy ounce.
Gold futures were likely to find support at USD1,262.60 a troy ounce, Friday's low, and resistance at USD1,330.10, Tuesday's high.
The December contract settled down 2.21% at USD1,268.20 a troy ounce on Friday.
Talks between the White House and congressional Republicans and Democrats remained in a deadlock on Monday, with both sides still unable to agree on a short-term debt ceiling increase.
The U.S. is due to hit its debt ceiling likely on Thursday, after which Washington won't be able to guarantee all of its obligations.
A government shutdown, also the product of congressional ability to agree on a spending package, was set to enter its third week this week.
The impasse continued to weaken the dollar on Monday, which gave gold room to rise as a hedge.
Global finance ministers and central bank chiefs gathered in Washington for the annual meeting of the International Monetary Fund and World Bank, with many calling for urgent action to end the stalemate and avoid default, which could bruise global economic recovery.
IMF Managing Director Christine Lagarde said on Sunday that failure to raise the debt ceiling and fund the government has global policymakers worried.
“If there is that degree of disruption, that lack of certainty, that lack of trust in the U.S. signature, it would mean massive disruption the world over, and we would be at risk of tipping, yet again, into recession,” Lagarde said in an interview with NBC’S “Meet the Press” program.
Meanwhile in Europe, data released on Monday showed that industrial production in the euro zone rose 1.0% in August, beating market calls for a 0.8% increase, which sent the euro climbing against the greenback, often a recipe for rising gold prices.
Elsewhere on the Comex, silver for December delivery was up 0.68% at USD21.403 a troy ounce, while copper for December delivery was up 1.03% and trading at USD3.303 a pound.
Gold and the dollar tend to trade inversely with one another.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,276.10 during U.S. afternoon hours, up 0.62%.
Gold prices hit a session low of USD1,268.50 a troy ounce and high of USD1,289.70 a troy ounce.
Gold futures were likely to find support at USD1,262.60 a troy ounce, Friday's low, and resistance at USD1,330.10, Tuesday's high.
The December contract settled down 2.21% at USD1,268.20 a troy ounce on Friday.
Talks between the White House and congressional Republicans and Democrats remained in a deadlock on Monday, with both sides still unable to agree on a short-term debt ceiling increase.
The U.S. is due to hit its debt ceiling likely on Thursday, after which Washington won't be able to guarantee all of its obligations.
A government shutdown, also the product of congressional ability to agree on a spending package, was set to enter its third week this week.
The impasse continued to weaken the dollar on Monday, which gave gold room to rise as a hedge.
Global finance ministers and central bank chiefs gathered in Washington for the annual meeting of the International Monetary Fund and World Bank, with many calling for urgent action to end the stalemate and avoid default, which could bruise global economic recovery.
IMF Managing Director Christine Lagarde said on Sunday that failure to raise the debt ceiling and fund the government has global policymakers worried.
“If there is that degree of disruption, that lack of certainty, that lack of trust in the U.S. signature, it would mean massive disruption the world over, and we would be at risk of tipping, yet again, into recession,” Lagarde said in an interview with NBC’S “Meet the Press” program.
Meanwhile in Europe, data released on Monday showed that industrial production in the euro zone rose 1.0% in August, beating market calls for a 0.8% increase, which sent the euro climbing against the greenback, often a recipe for rising gold prices.
Elsewhere on the Comex, silver for December delivery was up 0.68% at USD21.403 a troy ounce, while copper for December delivery was up 1.03% and trading at USD3.303 a pound.