Gold futures dropped more than $40 an ounce Tuesday to mark their lowest settlement in almost two months, failing to find safe-haven support with some investors expecting the U.S. government shutdown to be short lived.
Gold for December delivery dropped $40.90 ounce, or 3.1%, to settle at $1,286.10 an ounce on the Comex division of the New York Mercantile Exchange. Prices, tracking the most-active contracts, saw their biggest one-day dollar loss since June 26, FactSet data show. They also settled at their lowest level since Aug. 7.
On Monday, gold fell $12.20, or nearly 1%, to settle at $1,327 an ounce, but marked the first quarterly gain in a year.
In a daily note, Peter Hug, global trading director at Kitco Metals Inc. also said that the “event that will have the desired impact for the bulls is now 17 days away, when the fight draws to a climax on the debt-ceiling negotiations.”
“If they blow this one, the work accomplished over the past few years will be for naught,” he said.
Source: Marketwatch
