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NEW YORK ( TheStreet ) -- Gold prices closed at a record high Friday after a lackluster reading on gross domestic product for the second quarter. Gold for December delivery rose $15 at $1,631.20 an ounce at the Comex division of the New York Mercantile Exchange. The gold price has traded as high as $1,637.50, an intraday record, and as low as $1,613 while the spot gold price was up $7.80, according to Kitco's gold index. Silver prices for September settled up 31 cents to $40.10 an ounce. The U.S. dollar index was losing 0.40% at $73.82 while the euro was up 0.34% vs. the dollar.
The dollar was losing steam and gold prices were benefiting after news broke that the U.S. economy grew at a slower-than-expected pace of 1.3% in the second-quarter, according to the Department of Commerce's advance reading on gross domestic product. That compares with first-quarter growth of 0.4%, which was downwardly revised from initially reported expansion of 1.9%. Economists had been anticipating second-quarter growth of 1.7%, according to Briefing.com. Gold was also taking its cue from Washington, which has been unable to even vote on a debt ceiling plan. House Speaker Boehner failed to garner the votes for his debt plan Thursday, but after reportedly adding a balanced budget amendment to his proposal, his plan will be put to a floor vote this evening. Senate Democrats are still prepared to strike it down, and Senator Reid is preparing a vote on his own plan tonight as well.
in the gold price to the debt ceiling talk impasse," so if a deal is reached, then a lot of the impetus for higher prices will disappear. If there is no resolution "there would be quite a rush into gold," Clark said. He doesn't think default is an option but does think that gold could spike to $2,000 almost overnight if the U.S. does. "Long term, no doubt gold will have to move higher. ... The reason why people are buying gold outside of the U.S." has little to do with the debt crisis. Clark said gold will rise due to global inflation and weak currencies as people seek protection. Although silver has been acting less like a safe-haven metal and more as an industrial metal sensitive to a global slowdown, Clark believes prices will still head higher. "Going back to $50 by the end of the year is in the bag," he said. Clark says silver could even hit $60 as a monetary metal because it is cheaper than gold. Gold mining stocks were sinking Friday. Randgold Resources ( GOLD - Get Report) was down only 0.46% to $90.82 while Kinross Gold ( KGC - Get Report) is losing 2.27% at $16.35. Other gold stocks, Yamana Gold ( AUY - Get Report) and Harmony Gold ( HMY), were trading lower at $12.98 and $13.57, respectively.
-- Written by Alix Steel in New York. >To contact the writer of this article, click here: Alix Steel. >To follow the writer on Twitter, go to http://twitter.com/adsteel.