Gold prices in 2013 haven't performed as well as the previous few years – but Washington continues to give us plenty of reasons to buy the yellow metal.
This week showed us how sensitive the price of gold can be to news from Washington.
On the heels on the down-to-the-wire U.S. government budget and debt ceiling deal, gold prices moved abruptly higher and soared above the key $1,300 level.
In afternoon trading Thursday, spot gold was up 3.17 %, or $40.70, at $1,324.40.
Reasons for gold's sharp gains Thursday:
- The realization that the government deal simply "kicks the can" down the road yet again. Under the terms of the Senate deal, the government will only be funded through Jan. 15 and the debt ceiling debate comes up again Feb. 7.