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Gold prices rise on concern about Washington budget stalemate

September 25, 2013|By Stuart Pfeifer
  • The price of gold was rising Wednesday after falling for three consecutive trading sessions.
The price of gold was rising Wednesday after falling for three consecutive… (Kamran Jebreili / Associated…)

Gold prices on Wednesday morning rose for the first time in four trading sessions on mounting concern that U.S. budget negotiations will collapse and lead to a government shutdown.

Gold futures for delivery in December were up 0.6% to $1,324.70 an ounce on the Comex in New York. The price declined 3.9% in the previous three sessions.

“Worries about the U.S. government shutting down are pushing people to gold,” Phil Streible, a senior commodity broker at R.J. O’Brien & Associates in Chicago, told Bloomberg News.

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Concerns about a stalemate in Washington have triggered huge rises in precious metals in the past. Gold reached a record $1,923.70 on Sept. 6, 2011, as investors flocked to the metal because of concerns about  raising the debt ceiling.

Through Tuesday, gold was down 21% this year as some investors lost faith in the metal amid low inflation and a stock-market rally that sent equity indexes to record highs.

Silver was also rising Wednesday, with futures for December delivery up 0.8% to $21.765 an ounce on the Comex. Silver had tumbled 7.3% in the previous three sessions.

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