Gold rises sharply Monday

CHICAGO, (Xinhua) — Gold futures on the COMEX division of the New York Mercantile Exchange went up notably Monday as investors adjust positions to cope with risks from the debt ceiling.

The most active gold contract for December delivery rose 22 dollars, or 1.68 percent, to settle at 1,334.2 dollars per ounce.

A fight over debt ceiling is in sight in September at the U.S. Congress. While U.S. Treasury Department said it could continue to pay the country’s bills in full without breaching the legal limit on borrowing, budget experts forecast that the debt ceiling will likely have to be raised by mid- to late fall because of better- than-expected fiscal prospects.

Gold started its bottom-out journey last week driven by strong demand from China for raw materials in silver, as well as by better-than-expected trade data and industrial production figures from the east Asian country.

Silver for September delivery gained 93.3 cents, or 4.57 percent, to close at 21.34 dollars per ounce. Platinum for October delivery dipped 1.9 dollars, or 0.13 percent, to close at 1,498.7 dollars per ounce.

Sh Kh.