Gold futures on the COMEX division of the New York Mercantile Exchange on Wednesday closed at the highest level since Oct. 10 after the U.S. Senate reached a deal to end the partial shutdown of the federal government and raise the nation's debt limit.
The most active gold contract for December delivery rose 9.1 dollars, or 0.71 percent, to settle at 1,282.3 dollars per ounce.
The U.S. Senate reached a deal Wednesday that would finance the government until Jan. 15 and raise the debt ceiling until Feb. 7. Though the Senate and House still need to vote on the agreement, the gold market has gained confidence that the global economy will not experience a negative impact from a U.S. debt default, positive to gold.
Moreover, if the U.S. Senate only raises the debt limit until February and funds the government until mid-January, as the deal is thus clinched, the uncertainty will continue for the foreseeable future. Under such circumstances, the Federal Reserve may retain the quantitative easing for another few months at least, also supportive of gold.
Actually, gold has climbed in defiance of a stronger dollar Wednesday. Market analysts took this unconventional move as a sign of gold being in an oversold state, which points to prop up gold.
Solid demand for gold from China and India also continued to support gold.
Silver for December delivery gained 17.4 cents, or 0.82 percent, to close at 21.365 dollars per ounce. Platinum for January delivery climbed 14.8 dollars, or 1.07 percent, to close at 1,398. 2 dollars per ounce.