Gold rallies 1% on US fiscal jitters

Gold jumped more than one per cent on Friday as wrangling over the US budget and worries over the outlook for Federal Reserve policy stoked buying interest, with buying accelerating sharply on a break of a key chart level.

By Jan Harvey (Reuters)

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Published: Sat 28 Sep 2013, 10:24 AM

Last updated: Fri 3 Apr 2015, 7:56 AM

Spot gold was at $1,341.16 an ounce in midday trading, up 1.3 per cent, while US gold futures for December delivery were up $17.00 an ounce at $1,341.10.

US gold futures jumped to a high of $1,345.20 an ounce, up 1.6 per cent, after breaking through the 100-day moving average at $1,341 an ounce, a level it slid below last Friday when prices crashed 2.9 per cent.

“There were some stops above there, and equity futures are weaker because people are concerned about the political situation in the US and the prospect of another fiscal cliff,” Simon Weeks, head of precious metals at ScotiaMocatta, said.

“That’s driving it at the moment.”

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