Gold Advances on Concern Budget Deadlock Will Lead to Shutdown

Gold gained in New York on concern a U.S. budget deadlock will shut down the government. Platinum rebounded from the lowest level since July.

“There could be some support from U.S. debt ceiling talks,” Jonathan Butler, a precious metals strategist at Mitsubishi Corp. International (Europe) Plc in London, wrote in a report today. “Tapering will not be far away from investors’ minds in the fourth quarter and could lead to further speculative selling.”

This post has been edited by davinz18: Sep 27 2013, 08:54 PM

Gold holds gains

Gold prices ended up around one percent on Friday, driven up by a possible shutdown of US government operations next week and the threat of a debt default in the middle of October, as well as by the prospects for continued easy monetary policy from the Federal Reserve.

“Number one, people are worried about what’s going on with the potential government shutdown and looking to gold for a safe asset,” said New York Donald Selkin, chief market strategist at National Securities Corp. in New York.

“And second,” he said, “The comments from Fed President Evans, when he said ‘No tapering,’ which means the dollar could weaken and gold would go up because there’s more money floating around.”

Gold gains as US shutdown looms, headed for best quarter in a year

Gold edged higher on Monday as a possible U.S. government shutdown prompted safe-haven buying, and the metal was on track to record its best quarter in a year despite a cloudy outlook for U.S. stimulus.

"Gold has behaved like a safe-haven currency off late. The market is pricing in a possible government shutdown," said Barnabas Gan, an analyst at OCBC Bank in Singapore.

Gold could also get some support in the near term from the uncertainties around the mid-October deadline to raise the U.S. debt ceiling.

Gan expects prices to fall to $1,250 by the year-end if a stimulus tapering is announced in October and prices to climb to $1,400 if there is no cut.

+1

I don't why, I got the feeling price would up a bit & maintain for 1-2 weeks then "sharp" dropped

Gold futures drop as government shutdown looms

Gold futures dropped on Monday, joining a broad selloff in commodities and equities as fears of a U.S. government shutdown escalated.

While turmoil would be expected to boost gold, which traditionally serves as a haven for investors, analysts at Credit Suisse noted that investment demand remains lackluster, while the latest data on futures market positioning from the Commodities Futures Trading Commission indicated that gold’s recent mini-bounce was driven by traders covering short positions rather than fresh buying. They see tough technical resistance for gold futures at the $1,340 and $1,350 levels.

Now USD 1330/oz

The gold price chart looks "flat" only as for now

Gold ticks up as U.S. government shutdown begins

Gold edged higher on Tuesday as the U.S. government shut down some of its operations after Congress failed to agree on a spending bill, but gains were limited as investors believe the stand-off will likely soon be
resolved.

"Should the political wrangling continue over the debt-ceiling negotiations mid-month, this could provide the
impetus for gold to break out of its $1,300 to 1,350 range," said Victor Thianpiriya, an analyst at ANZ in Singapore.

"The market is not putting on a big net position which makes me think that when we get a breakout, it is likely to be sizeable."

A Sydney-based trader said gold was not seeing much safe-haven buying as the issue was likely to be resolved soon and there was not much upside to gold beyond that.

What Happen????

Now USD 1294/oz

Maybe got to do with US shut down?

US shutdown: a guide for non-Americans

http://www.theguardian.com/world/2013/sep/...r-non-americans

What happening to the market? Suddenly "sharp" drop yesterday, Now Suddenly "sharp" increase. It's almost the same rate (drop & up - see the chart)

I see I'm still learning

Gold pulls back after prior-session rally

Gold prices were headed back down again on Thursday on the heels of a nearly 3% gain in the prior session.

Payroll processing firm ADP said earlier that U.S. non-farm private employment rose by a seasonally adjusted 166,000 in September, missing expectations for an increase of 180,000.

July's figure was revised down to a gain of 159,000 from 176,000.

The numbers bolstered gold by keeping expectations alive that the Federal Reserve will continue stimulating the economy with its monthly USD85 billion in asset purchases, which weaken the dollar by driving down interest rates to spur recovery.

Gold down on U.S. govt shutdown, low demand

Gold fell on Thursday, as investors booked profits after the previous session's gains due to uncertainty about a partial U.S. government shutdown and slow demand in key physical markets

"Prices cut losses after the U.S. data but ...I think the big news is going to be the October 17 meeting for the U.S. budget talks," Natixis analyst Bernard Dahdah said.

"Prices are likely to fluctuate ahead of that as investors will be betting on whether there is going to be a solution or not."

"More bearish (is that)... when the gold price fell back in September the premium did not rise as might have been expected, suggesting a non-price related weakening of Chinese demand; in other words that the Chinese might not want much gold," it added.

Gold Holds Above $1,300 as Investors Assess U.S. Economy, Debt

Gold held above $1,300 an ounce, trimming a weekly loss, as investors weighed the prospect of slower U.S. economic growth as a partial government shutdown entered a fourth day and lawmakers wrangled over the debt limit.

“The market feels a little directionless, and the safe-haven bid around the U.S. debt ceiling remains absent,” Victor Thianpiriya, an analyst at Australia & New Zealand Banking Group Ltd. (ANZ) wrote in a note to clients. “ETF holdings also continue to trickle lower and it will be difficult to justify a gold rally in this environment.”

Traders and analysts are bullish for a third week, the longest positive run since July, with 18 respondents in a Bloomberg survey expecting gold prices to rise next week, compared with eight who were bearish and four neutral.

Now USD1315/oz

Gold drops as shutdown continues

GOLD prices have declined as investors remained upbeat about an eventual resolution to the US budget impasse that has kept the federal government shut down for four days.

Traders at TD Securities said a protracted budget impasse was likely to drive more investors away from equities, which are sensitive to an economic slowdown, and toward gold, which is seen as a haven.

Gold's losses were kept in check amid hopes that the Federal Reserve will continue to pump money into the economy for longer than expected in order to offset the impact of the government shutdown.