Bright day for bullions

Gold rebounds on Monday from a three-month low

Bullion metal prices ended higher on Monday, 14 October 2013. Gold futures rebounded on Monday from a three-month low, but closed off the session's highs as news that U.S. President Barack Obama will meet with congressional leaders helped to dull some of the yellow metal's investment appeal.

December gold gained $8.40, or 0.7%, to settle at $1,276.60 an ounce on the Comex division of the New York Mercantile Exchange. Prices had topped $1,290 in electronic trading overnight.

Silver futures were also on the rise, with the December contract up 9.5 cents, or 0.5%, at $21.35 an ounce, following highs above $21.60.

Gains in gold were pared in late-morning trading on reports U.S. lawmakers may be close to agreement on a U.S. budget and debt ceiling plan that would reopen the U.S. government.

The U.S. stock indexes were seeing selling pressure early Monday as the U.S. Congress and President Obama over the weekend made little to no progress on reopening the government and agreeing on a measure to extend the government debt ceiling. This sparked some safe-haven demand for gold. However, as the news reports started to surface Monday morning that constructive conversations were taking place between Democratic and Republican lawmakers, the stock market started to turn around and gold prices backed off their daily highs.

The U.S. government has been closed for two weeks and late this week it's likely the U.S. will reach its debt ceiling. There were no U.S. economic data released Monday, which is the U.S. Columbus Day holiday. The U.S. Treasury markets were closed on Monday.

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