Investing.com - Gold futures turned lower on Monday, as mounting worries over a possible U.S. government shutdown kept investors in a cautious mood.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,327.10 a troy ounce during U.S. morning hours, down 0.9%.
Gold prices rose by as much as 0.8% earlier in the session to hit a daily high of USD1,350.30 a troy ounce, the strongest level since September 20.
The December contract ended 1.15% higher on Friday to settle at USD1,339.20 a troy ounce.
Gold futures were likely to find support at USD1,306.20 a troy ounce, the low from September 24 and resistance at USD1,366.50, the high from September 20.
Political wrangling in Washington over funding for President Barack Obama’s healthcare law continued over the weekend, fuelling fears over the prospect for a U.S. government shutdown.
Congress must pass a short-term budget by midnight on Monday in order to avoid the first government shutdown in 17 years.
Republican opposition to the funding of the Affordable Care Act has created a standoff with the White House and the Democratic-controlled Senate, which have both said they will not support any budget bill that defunds or amends Obamacare.
Later this month, Congress will have to extend the U.S. debt ceiling which the U.S. Treasury Department has estimated will be reached by October 17.
Moody's Investors Service warned that a failure to raise the debt limit would result in a worse outcome for financial markets than a government shutdown.
Meanwhile, investors focused on political instability in Italy.
The euro found support following reports that Silvio Berlusconi was facing dissent within his political party after he announced Saturday that he was pulling his ministers out of Prime Minister Enrico Letta’s coalition government and calling for fresh elections.
Elsewhere on the Comex, silver for December delivery fell 1.1% to trade at USD21.59 a troy ounce, while copper for December delivery dipped 0.1% to trade at USD3.327 a pound.
Data released earlier in the day showed that China’s final HSBC Purchasing Managers Index was revised down to 50.2 from an initial reading of 51.2, indicating the recovery in the world’s second largest economy remains fragile.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,327.10 a troy ounce during U.S. morning hours, down 0.9%.
Gold prices rose by as much as 0.8% earlier in the session to hit a daily high of USD1,350.30 a troy ounce, the strongest level since September 20.
The December contract ended 1.15% higher on Friday to settle at USD1,339.20 a troy ounce.
Gold futures were likely to find support at USD1,306.20 a troy ounce, the low from September 24 and resistance at USD1,366.50, the high from September 20.
Political wrangling in Washington over funding for President Barack Obama’s healthcare law continued over the weekend, fuelling fears over the prospect for a U.S. government shutdown.
Congress must pass a short-term budget by midnight on Monday in order to avoid the first government shutdown in 17 years.
Republican opposition to the funding of the Affordable Care Act has created a standoff with the White House and the Democratic-controlled Senate, which have both said they will not support any budget bill that defunds or amends Obamacare.
Later this month, Congress will have to extend the U.S. debt ceiling which the U.S. Treasury Department has estimated will be reached by October 17.
Moody's Investors Service warned that a failure to raise the debt limit would result in a worse outcome for financial markets than a government shutdown.
Meanwhile, investors focused on political instability in Italy.
The euro found support following reports that Silvio Berlusconi was facing dissent within his political party after he announced Saturday that he was pulling his ministers out of Prime Minister Enrico Letta’s coalition government and calling for fresh elections.
Elsewhere on the Comex, silver for December delivery fell 1.1% to trade at USD21.59 a troy ounce, while copper for December delivery dipped 0.1% to trade at USD3.327 a pound.
Data released earlier in the day showed that China’s final HSBC Purchasing Managers Index was revised down to 50.2 from an initial reading of 51.2, indicating the recovery in the world’s second largest economy remains fragile.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.