Investing.com - Gold futures were higher on Tuesday, after the U.S. Congress failed to reach an agreement on a budget for the next fiscal year, leading to a partial shutdown of the government.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,335.10 a troy ounce during European morning hours, up 0.6%.
Gold prices rose by as much as 0.8% earlier in the session to hit a daily high of USD1,337.80 a troy ounce. The December contract ended 0.91% lower on Monday to settle at USD1,327.00 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.
The U.S. government began a partial shutdown after lawmakers failed to reach an agreement on a new budget before Monday's midnight deadline. It is the first government shutdown in the U.S. since 1996.
Lawmakers are expected to continue negotiating a funding measure later in the day in hopes of reaching a compromise.
Republicans have insisted on delaying the implementation of President Obama's health care reforms as a condition for passing the budget.
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 were closely watching political developments in Italy, with Prime Minister Enrico Letta due before parliament for a vote of confidence on Wednesday after Silvio Berlusconi pulled his ministers out of the coalition government on Saturday.
Elsewhere on the Comex, silver for December delivery rose 0.9% to trade at USD21.90 a troy ounce, while copper for December delivery added 0.3% to trade at USD3.334 a pound.
Government data released earlier in the day showed that China’s official manufacturing purchasing managers' index inched up to 51.1 in September from 51.0 in August, missing forecasts for 51.5.
The Asian nation 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 USD1,335.10 a troy ounce during European morning hours, up 0.6%.
Gold prices rose by as much as 0.8% earlier in the session to hit a daily high of USD1,337.80 a troy ounce. The December contract ended 0.91% lower on Monday to settle at USD1,327.00 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.
The U.S. government began a partial shutdown after lawmakers failed to reach an agreement on a new budget before Monday's midnight deadline. It is the first government shutdown in the U.S. since 1996.
Lawmakers are expected to continue negotiating a funding measure later in the day in hopes of reaching a compromise.
Republicans have insisted on delaying the implementation of President Obama's health care reforms as a condition for passing the budget.
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 were closely watching political developments in Italy, with Prime Minister Enrico Letta due before parliament for a vote of confidence on Wednesday after Silvio Berlusconi pulled his ministers out of the coalition government on Saturday.
Elsewhere on the Comex, silver for December delivery rose 0.9% to trade at USD21.90 a troy ounce, while copper for December delivery added 0.3% to trade at USD3.334 a pound.
Government data released earlier in the day showed that China’s official manufacturing purchasing managers' index inched up to 51.1 in September from 51.0 in August, missing forecasts for 51.5.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.