Gold remain stronger during last trading session

Published: Saturday, July 30, 2011, 14:32 [IST]

With political impasse continuing between the White House and Republican Party leaders over debt-ceiling, gold became popular among the global investors.

Gold prices jumped to an intraday record US$ 1637.50 an ounce as investors reached for what is widely considered the ultimate safe haven.

United States politicians have just three days left to raise the debt-ceiling and prevent a government debt default. President Barack Obama and House Republicans remain split on how to cut spending and increase the national borrowing limit.

"After seven days of stock market losses and doubt, investors were buying gold as a general hedge against further declines," said George Gero, vice-president with RBC Capital Markets Global Futures.

At the Multi Commodity Exchange, Gold for delivery in far-month February rose to Rs 24,175 per 10 grams.

While, gold rose by US$ 3.10 to US$ 1617.20 an ounce in New York last night.

Gold surged on weaker than expected US growth data, which made investors concern about the US economy.

With political gridlock continuing, the weekend will be “stressful" for investors due to uncertainty about what to expect from Congress, Gero says.

OneIndia Money

Story first published: Saturday, July 30, 2011, 14:32 [IST]

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