This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Gold Prices Slip as Debt Ceiling Extended (Update 1)

Updated from 11:35 a.m. EST with settlement prices

NEW YORK (TheStreet) -- Gold prices ticked lower on Wednesday as the House voted to suspend the debt ceiling for four months.

Gold for February delivery lost $6.50 to settle at $1,686.70 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,694.80 and as low as $1,683.10 an ounce, while the spot price was slipping $6.10, according to Kitco's gold index.

The House voted Wednesday to temporarily suspend the debt ceiling and Senate Democratic leadership emerged to offer their support of the vote. Republicans made the decision to push the debt debate to a later date, and Democrats followed President Barack Obama's lead as his office released a statement late Tuesday that it was encouraged by a short-term solution.

"[T]he Administration is encouraged that H.R. 325 lifts the immediate threat of default," an administration statement on policy said. "[T]he Administration would not oppose a short-term solution to the debt limit and looks forward to continuing to work with both the House and the Senate to increase certainty and stability for the economy."

Avoiding a debt limit clash will delay fears of a repeat of the summer 2011 encounter that led to a protracted disagreement to raise the ceiling, which led to Standard & Poor's downgrade of the government's credit rating.

Gold stood to benefit from the uncertainty of a debt limit disagreement, but the delay has led prices lower for Wednesday.

The gold price during the trading session didn't slump significantly, though, because another major vote by Congress is quickly approaching to settle the sequester -- across the board spending cuts to the budget -- and an official budget vote for the fiscal year.

Silver prices for March delivery added 26 cents to close at $32.44 an ounce, while the U.S. dollar index was up 0.10% to $79.95.

Gold has been stuck in a tight trading range with few economic events or announcements to push it decidedly in one direction.

"We seem to be moving away from that crisis mentality," said Stanley Dash, vice president of applied technology analysis at TradeStation Securities. "Gold hasn't moved in weeks."

Stock quotes in this article: KGC, GFI, ABX, NEM, IAU, GLD 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs