Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures rose Tuesday, returning to record territory as U.S. lawmakers remained deadlocked over how to pursue a deal to raise the country�s debt ceiling. Gold for August delivery, the contract with the most volume, added $2.90, or 0.2%, to trade at $1,615.20 an ounce on the Comex division of the New York Mercantile Exchange. The December contract, which has the most open interest, added $3.50 to $1,617.90 an ounce. August gold settled at a record $1,612.20 an ounce on Monday, after a weekend of talks failed to produce a deal on the U.S. debt limit and deficit reduction.

�Money is pouring into tangible assets,� said Scott Meyers, a senior trading analyst with Pioneer Futures. Investors are reallocating more money to gold from other assets such as the stock market as the debt-ceiling impasse is one of the most important developments in recent years, he added. Late Monday, President Barack Obama and House Speaker John Boehner touted vastly different debt-ceiling plans. The $14.3 trillion debt ceiling needs to be raised by Aug. 2 or the government is at risk to begin defaulting on its obligations. See full story.