Investing.com – Gold futures extended gains on Wednesday, climbing to fresh record high after worse-than-expected data on U.S. durable goods orders added to mounting concerns over the U.S. economic outlook.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,627.55 a troy ounce during U.S. morning trade, advancing 0.39%.
It earlier rose as much as 0.5% to trade at an all-time high of USD1,629.85 a troy ounce, eclipsing the previous high of USD1,625.05 a troy ounce it hit on Monday.
Gold prices have climbed to record highs in six of the past 11 sessions.
The U.S. Census Bureau said earlier that durable goods orders, which include transportation items, fell by a seasonally adjusted 2.1% in June, confounding expectations for a 0.4% gain.
Excluding transportation, orders edged up 0.1% in June, below expectations for a 0.5% gain.
Meanwhile, concerns over sovereign debt in the U.S. and the euro zone boosted the safe haven appeal of the precious metal.
With seven days to go before the August 2 deadline, U.S. Republican leaders delayed a key vote on a plan to raise the USD14.3 trillion debt ceiling until Thursday at the earliest, adding to concerns over a possible sovereign debt default or downgrade.
In the euro zone, Spanish and Italian bond yields jumped after German Finance Minister Wolfgang Schaeuble said earlier that Berlin was against a “blank check” for the European Financial Stability Facility to purchase bonds on the secondary market.
The comments sparked fresh concerns that last week’s agreement on a second bailout package for Greece has not fully addressed the issues relating to the euro zone’s debt crisis.
Gold is often seen as an alternative currency in times of global economic uncertainty and a refuge from financial risk.
Elsewhere on the Comex, silver for September delivery jumped 1.1% to trade at USD41.37 a troy ounce, the highest price since May 4, as investors sought a cheaper alternative to gold.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,627.55 a troy ounce during U.S. morning trade, advancing 0.39%.
It earlier rose as much as 0.5% to trade at an all-time high of USD1,629.85 a troy ounce, eclipsing the previous high of USD1,625.05 a troy ounce it hit on Monday.
Gold prices have climbed to record highs in six of the past 11 sessions.
The U.S. Census Bureau said earlier that durable goods orders, which include transportation items, fell by a seasonally adjusted 2.1% in June, confounding expectations for a 0.4% gain.
Excluding transportation, orders edged up 0.1% in June, below expectations for a 0.5% gain.
Meanwhile, concerns over sovereign debt in the U.S. and the euro zone boosted the safe haven appeal of the precious metal.
With seven days to go before the August 2 deadline, U.S. Republican leaders delayed a key vote on a plan to raise the USD14.3 trillion debt ceiling until Thursday at the earliest, adding to concerns over a possible sovereign debt default or downgrade.
In the euro zone, Spanish and Italian bond yields jumped after German Finance Minister Wolfgang Schaeuble said earlier that Berlin was against a “blank check” for the European Financial Stability Facility to purchase bonds on the secondary market.
The comments sparked fresh concerns that last week’s agreement on a second bailout package for Greece has not fully addressed the issues relating to the euro zone’s debt crisis.
Gold is often seen as an alternative currency in times of global economic uncertainty and a refuge from financial risk.
Elsewhere on the Comex, silver for September delivery jumped 1.1% to trade at USD41.37 a troy ounce, the highest price since May 4, as investors sought a cheaper alternative to gold.