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

- October 15th, 2013

Gold prices sank Oct. 15, hitting their lowest level in three months.

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.”

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