After a weekend of stalled debt talks, gold rose sharply and hit a Monday morning high of $1,623 an oz before drifting lower.
Lawmakers in the U.S.A. spent the weekend trying to resolve negotiations to raise the debt limit and reduce the nation's long-term debt. The Republican-led House of Representatives is holding out for a one-year deal with no tax increases. The Democrats want to see a mix of cuts and higher taxes, along with a deal that will pushes any future debt ceiling negotiations beyond the next election cycle.
Uncertainty to resolve the issue has spooked the rating agencies and led to a flight to gold.
Chart is from goldprice.org.