Gold Slumps Below $1,300 Despite US Government Shutdown

Gold prices fell below $1,300 an ounce October 1. The US government shutdown failed to boost prices of the precious metal today as investors believed the shutdown wouldn’t last long, Reuters reported.

Spot gold hit $1,294.30 an ounce, a drop of $31.06 from the previous session. It hit a low of $1,288.16 an ounce earlier in the session.

Gold futures for December delivery were also down $29.80 to $1,295.70 an ounce.

Even as a government shutdown seemed likely on Monday, gold prices failed to make major gains, MarketWatch reported.

“The market has been displaying weak conviction over the past few days, with the government showdown failing to spur new buying,” said Peter Hug, global trading director at Kitco Metals Inc, according to MarketWatch.