WASHINGTON (dpa-AFX) - Gold hit record highs on Friday on demand for an investment heaven amid mounting concerns over the U.S. debt impasse. Friday morning's weaker than expected U.S. GDP report also added to the upside movement of gold.
Gold futures for December delivery added $15.00, to $1,631.20 on the Comex in New York. Earlier it rose to a new all time record high of $1,634.90 an ounce. The metal, up 8.1 percent in July, headed for the fourth straight weekly advance.
Focus was also on looming debt limit catastrophe as increasingly nervous traders and investors watch with uncertainty the approaching government's default deadline of August 2. Meanwhile Republican leaders clambered to rescue their budget deficit cutting plan after conservatives mounted a rebellion adding further chaos to the drama.
Ratings agencies Moody's, Standard & Poor's and Fitch's have threatened to cut the U.S.'s triple A rating rating in the event that a failure to raise the debt ceiling results in a default or the deal fails to take into account longer term spending and tax issues.
Downbeat economic data also added to gold's appeal. Gross domestic product in the U.S. rose less than expected in the last quarter, preliminary official data showed on Friday.
The Bureau of Economic Analysis report showed that GDP rose to a seasonally adjusted annual rate of 1.3 percent, from 1.9 percent in the preceding quarter. Analysts had expected the GDP to rise 1.7 percent. in the last quarter.
Also, Chicago PMI fell more than expected last month, data showed on Friday.
Research group Kingsbury International said that the Chicago PMI fell to a seasonally adjusted 58.8, from 61.1 in the preceding month. Analysts had expected the Chicago PMI to fall to 60.0 last month.
Copyright RTT News/dpa-AFX