.jpg)
Kontak Perkasa - Bloomberg (16/10) -- Gold fell for
the first time in three days amid expectations that U.S. lawmakers will
reach an agreement to lift the debt ceiling before the government’s
borrowing authority lapses tomorrow.
Bullion for immediate delivery lost as much as 0.6 percent to $1,274.51 an ounce and was at $1,279.84 at 11:37 a.m. in Singapore. Prices dropped to $1,251.85 yesterday, the lowest level since July 10, before closing 0.8 percent higher as the negotiations stalled. Gold for December traded 0.5 percent higher at $1,279 an ounce on the Comex in New York. Senate leaders resumed talks aimed at avoiding a default and ending the government shutdown after the House of Representatives scrapped a vote on a plan that would have kept the government open through Dec. 15 and suspended the debt limit until Feb. 7, 2014. Fitch Ratings put the U.S. on watch for a possible credit downgrade, citing lawmakers’ inability to forge a deal even as it expects the debt ceiling to be raised. “History suggests that politicians will pull back from the abyss,” Ric Spooner, chief market analyst at CMC Markets in Sydney, wrote in an e-mailed note today. “Investors appear content to take a wait-and-see attitude to this situation.” The U.S. will begin missing promised payments between Oct. 22 and Oct. 31, according to the Congressional Budget Office. The government shutdown, which began Oct. 1, may have already hurt the recovery. Data yesterday showed the Federal Reserve Bank of New York’s general economic index fell to a five-month low in October. Gold lost 24 percent this year, set for the first annual drop since 2000, on speculation the Fed will slow its $85 billion-a-month of debt buying as the economy improves. Spot silver lost as much as 1 percent to $21.1567 an ounce and last traded at $21.285. Prices dropped to $20.5088 yesterday, the lowest since Aug. 9, before rallying 0.5 percent. Platinum rose and fell at least 0.3 percent, before trading little changed at $1,386.15 an ounce. Palladium fluctuated between gains and losses, and traded little changed at $707.75 an ounce. |
Written by: Kontak Perkasa Futures
PT.Kontak Perkasa Futures, Updated at: 11:50 AM
Post a Comment