3
 

Gold gains as U.S. government shutdown, default fears weaken dollar

By Investing.com  |  Commodities News  |  Oct 07, 2013 07:07PM GMT  |   1 Comment
 
AA
+
-
Investing.com - Gold prices rose on Monday as investors avoided the dollar as a U.S. government shutdown entered a second week with no end in sight.

Gold gains as U.S. government shutdown, default fears weaken dollar
The deadlock weakened the dollar, which tends to trade inversely with gold, especially as fears began to grown the standoff may hike the chance of U.S. default down the road.

On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,321.70 during U.S. afternoon hours, up 0.90%.

Gold prices hit a session low of USD1,308.80 a troy ounce and high of USD1,328.60 a troy ounce.

Gold futures were likely to find support at USD1,278.20 a troy ounce, Wednesday's low, and resistance at USD1,375.10, the high from Sept. 19.

The December contract settled down 0.58% at USD1,309.90 a troy ounce on Friday.

An impasse among U.S. lawmakers and the White House over terms needed to create a spending package and reopen the government sent investors avoiding the dollar on Monday.

Markets were also growing increasingly worried that the deadlock will affect negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by Oct. 17, after which the risk of default rises.

Republican House Speaker John Boehner said Sunday the House will not support bills to fully reopen the government or increase the government debt ceiling unless the Obama administration agrees to talks aimed at reducing the deficit.

A U.S. default could roil markets and slow U.S. recovery by further eroding confidence in Washington's ability to craft economic policy,

Elsewhere on the Comex, silver for December delivery was up 2.58% at USD22.313 a troy ounce, while copper for December delivery was down 0.16% and trading at USD3.296 a pound.











Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related Articles

Add a Comment

 

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Gold
 
 
 
Are you sure you want to delete this chart?
 
Comments
Chas Holman
Chas Holman Oct 08, 2013 04:49AM GMT
If I were the GOP I would quit the charades, open the Government for the markets, and go down in history as only ‘temporarily’ insane.. . No SANE party of ‘patriots’ would intentionally crash it’s own nations economy by ‘URGENT CHOICE’,… of this there is no doubt.
 
 
Are you sure you want to delete this chart?
 
 
 

Successfully Reported

Thank you. This comment has been flagged for a moderator.
_touchLoadingMsg