Gold futures to a record $1,637.50 U.S. an ounce on demand for an investment haven amid mounting concerns on the U.S. debt impasse and signs of a faltering economy.
U.S. lawmakers are offering rival plans to avert a default as the Aug. 2 deadline for raising the $14.3-trillion U.S. debt limit nears. A government report today showed that gross domestic product rose less than forecast in the second quarter, driving the dollar lower. Gold headed for the biggest monthly gain since November 2009.
Gold futures for December delivery rose $9, or 0.6%, to $1,625.20 U.S. on the Comex in New York. The metal, up 8.1% in July, was poised for the fourth straight weekly advance.
The Standard & Poor’s 500 Index headed for its biggest weekly decline in almost a year, and the dollar was down for the third straight week against a basket of six major currencies.
Before today, gold climbed 14% this year. Yesterday, holdings in exchange-traded products backed by the metal rose 0.9% to a record 2,150.5 tons.
Silver futures for September delivery climbed 11.6 cents, or 0.3%, to $39.91 U.S. an ounce on the Comex. Before today, the metal gained 29% this year.
Platinum futures for October delivery declined $6.90, or 0.4%, to $1,785.50 U.S. an ounce on the New York Mercantile Exchange. Palladium futures for September delivery rose $1.40, or 0.2%, to $829.50 U.S. an ounce.
