Gold, Palladium Plummet in a Week Amid Concerns About U.S. Budget Deadlock

Bloomberg reported that spot gold prices dropped as much as 1% to $1,694.35 per ounce. Other metals also declined to a one-week low, such as Palladium, which fell 0.7% to $685 per ounce.

As quoted in the market news:

“Spot gold slumped as much as 1 percent to $1,694.35 an ounce, the lowest price since Dec. 7, and traded at $1,700.90 at 10:49 a.m. in Singapore. The metal climbed to $1,723.40 yesterday, the most expensive since Nov. 30, after the Federal Reserve said it will expand asset purchases. The rally was “modest” as additional Fed balance sheet expansion was already “priced in,” according to Goldman Sachs Group Inc.

Gold dropped with other commodities including oil and copper as the dollar rebounded from a three-day decline against a basket of six major currencies. U.S. lawmakers said it’s becoming less likely an agreement on the budget can be enacted before the Christmas holiday, as House Speaker John Boehner said yesterday both parties have “got some serious differences.”

Click here to read the full Bloomberg report.