Investing.com - Gold futures traded higher in the early part of Monday’s Asian session after touching a three-month low last Friday. The yellow metal traded higher as U.S. policymakers still do not appear to be close to reaching an agreement to end the first government shutdown there in 17 years.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery rose 0.39% to USD1,273.20 per troy ounce in Asian trading Monday. The December contract settled lower by 2.21% at USD1,268.20 an ounce last Friday.
Last week, bullion plunged 2.9%, notching the second straight weekly decline. Gold futures were likely to find support at USD1,242.35 a troy ounce, the low from July 10 and resistance at USD1,311.80, the high from October 10.
While policymakers from both parties are looking to craft a deal to reopen the government, some traders are growing skittish that such an agreement will not arrive in enough to avert debt ceiling debacle. The U.S. must raise the debt ceiling by October 17 or risk defaulting on its sovereign debt obligations.
The U.S., which does not have an AAA credit rating, has never defaulted. China and Japan, among other major holders of U.S. Treasuries, are putting some pressure on the U.S. to solve the debt ceiling, but the government must be open to achieve that goal.
Gold is down 24% this year largely as investors anticipate an end to the Federal Reserve's stimulus, as well as rising higher interest rates, according to the Wall Street Journal.
Elsewhere, Comex silver for December delivery rose 0.12% to USD21.285 per ounce while copper for December delivery slid 0.67% to USD3.249 an ounce.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery rose 0.39% to USD1,273.20 per troy ounce in Asian trading Monday. The December contract settled lower by 2.21% at USD1,268.20 an ounce last Friday.
Last week, bullion plunged 2.9%, notching the second straight weekly decline. Gold futures were likely to find support at USD1,242.35 a troy ounce, the low from July 10 and resistance at USD1,311.80, the high from October 10.
While policymakers from both parties are looking to craft a deal to reopen the government, some traders are growing skittish that such an agreement will not arrive in enough to avert debt ceiling debacle. The U.S. must raise the debt ceiling by October 17 or risk defaulting on its sovereign debt obligations.
The U.S., which does not have an AAA credit rating, has never defaulted. China and Japan, among other major holders of U.S. Treasuries, are putting some pressure on the U.S. to solve the debt ceiling, but the government must be open to achieve that goal.
Gold is down 24% this year largely as investors anticipate an end to the Federal Reserve's stimulus, as well as rising higher interest rates, according to the Wall Street Journal.
Elsewhere, Comex silver for December delivery rose 0.12% to USD21.285 per ounce while copper for December delivery slid 0.67% to USD3.249 an ounce.