Gold Falls to Lowest Since July at $1,251.66 an Ounce

Gold prices sank Oct. 15, hitting their lowest level in three months. Spot gold fell to $1,251.66 an ounce earlier today — the lowest price since July 10, Reuters reported. Later in the session it rose to $1,271.21 an ounce.

Speculation over a possible resolution to the US government shutdown caused demand for the safe-haven metal to decline, the source said. Lawmakers hinted that a deal could come Tuesday.

Gold futures for December delivery were also down today by $10.90 to $1,265.70 an ounce on the COMEX in New York, The Wall Street Journal reported.

If the government reaches a budget deal, gold will likely continue to decline if the economy continues to improve, Natixis analyst Nic Brown told Reuters.

“The effect of the budget-related shutdown will be that while it hits (growth), it reduces the deficit more quickly,” he said. “That’s negative for precious metals.”