Gold continues to rise after Timothy Geithner debt ceiling warning

<p>Gold futures have risen following Timothy Geithner’s warning about the longevity of recent debt ceiling implementations.</p>

Gold has continued to rise in commodities trading today (January 15th) after US Treasury secretary Timothy Geithner stated the so-called extraordinary action he took to avoid breaching the debt ceiling regulations would only have a short-term effect.

Mr Geithner said in an open letter to the House of Representatives speaker John Boehner that the measures would only work until mid-February to early March and warned that failure by Congress to increase this limit could lead to "severe economic hardship" for the nation, which has just overcome the matter of the fiscal cliff.

The Treasury secretary will step down on January 25th and is anticipated to be replaced by White House chief of staff Jack Lew, who was nominated by Barack Obama for the position.

At 15:25 GMT, Forex Gold rose by 0.8 per cent to $1681.00 per ounce, while Dubai Gold Futures closed higher last night by 0.5 per cent to $1668.00 per ounce.

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