Gold Drops to $1,327.20 an Ounce in New York

Gold prices fluctuated Sept. 30 due to a possible US government shutdown, which could boost demand for safe haven assets, Bloomberg reported.

Gold futures for December delivery were down $11.94 to $1,327.20 an ounce on the COMEX in New York. However, earlier in the session, prices hit $1,353.80 an ounce. Spot gold prices also fell $9.28 to $1,326.30 an ounce.

Investors were cautious, awaiting news of the U.S. government’s budget talks and possible shutdown, Reuters reported.

“It is definitely a short-term phenomenon,” Barnabas Gan, an analyst at OCBC Bank in Singapore, told Reuters, referring to the potential surge in gold related to the current crisis over the US debt ceiling. “The sentiment towards gold is still expected to be bearish for the full year.”