Gold drops on US Govt. shutdown uncertainty, low demand
Friday, 4 October 2013 02:12
REUTERS: Gold fell on Thursday, as investors booked profits after the previous sessionâ€™s gains due to uncertainty about a partial US Government shutdown and slow demand in key physical markets.
The metal rose 2.2% on Wednesday, posting the biggest daily gain in two weeks, as the dollar fell to an eight-month low and the shutdown showed no end in sight.Failure to increase the debt limit would push the worldâ€™s biggest economy into default and shake markets, already on the edge over the outlook for US stimulus.
â€śThere is some profit-taking and volumes are low as investors are not certain of the US political deadlock,â€ť VTB Capital analyst Andrey Kryuchenkov said.
â€ś17 October is the deadline for the US debt ceiling talks, and as far as gold is concerned, I think there isnâ€™t enough conviction in the market for the safe-haven appeal to really materialise.â€ť