CHICAGO, Oct. 7 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange ended higher Monday for the first time in three trading sessions.
The most active gold contract for December delivery rose 15.2 dollars, or 1.16 percent, to settle at 1,325.1 dollars per ounce. Market analysts believe as U.S. lawmakers remained deadlocked over extending the nation's debt limit to avoid default amid a government shutdown, the market demand will be stoked for gold as a store of value.
Gold is getting some bids because of the uncertainty and it would be a very big deal if the U.S. defaults, some analysts say.
John Boehner, the Speaker of the U.S. House of Representatives, said Sunday that he didn't have the votes needed to ensure a passage of a "clean" bill to fund the government, or a bill that doesn't link the debt limit with broader commitments on cutting the deficit, according to reports.
Also, Boehner said a default was possible unless the White House gives ground on Republican demands. The partial shutdown of the U.S. federal government has now entered its seventh day since Oct. 1, when the country's new fiscal year started.
If the U.S. was to default on its debt, it would not only hurt the U.S. dollar, but also the U.S. economic prospects and the future of the world's largest economy. Silver for December delivery rose 63.4 cents, or 2.91 percent, to close at 22.386 dollars per ounce.