Meeting With Congressional Leaders Postponed, Precious Metals Edge Higher
On Monday, gold (NYSEARCA:GLD) futures for December — the most active contract — gained $8.40 to close at $1,276.60 per ounce, while silver (NYSEARCA:SLV) futures increased 10 cents to finish at $21.35. Major exchanged-traded funds, like the SPDR Gold Trust, also closed slightly higher.
Precious metals found some buying support as a fiscal compromise still eludes Congress. With the government entering its third week into the partial shutdown, politicians have yet to agree on how to reopen the government and raise the debt ceiling.
Senate leaders and President Obama appear to be optimistic about a deal being reached soon, but a meeting with congressional leaders scheduled for Monday afternoon was cancelled at the last minute.
“The President’s 3:00 pm meeting with the bipartisan leadership has been postponed to allow leaders in the Senate time to continue making important progress towards a solution that raises the debt limit and reopens the government,” the White House said in a statement.
By the end of the trading day, shares of the SPDR Gold Trust (NYSEARCA:GLD) gained 0.20 percent, while the iShares Silver Trust (NYSEARCA:SLV) edged lower. Gold miners (NYSEARCA:GDX) Barrick Gold (NYSE:ABX) and Newmont Mining (NYSE:NEM) increased 0.20 percent and 0.50 percent, respectively. Silver miner Hecla Mining (NYSE:HL) managed to climb nearly 2 percent higher, while First Majestic Silver (NYSE:AG) rose 0.30 percent.
It has been a rough year for precious metals. The SPDR Gold Trust and iShares Silver Trust are down 24 percent and 30 percent year-to-date, respectively.
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Disclosure: Long EXK, AG, HL, PHYS