Bloomberg
(14/10) -- Gold swung between gains and losses above a three-month low
as U.S. Senate leaders struggled to draft an accord to increase the debt
limit and avert a default before a deadline this week. Bullion
for immediate delivery rose as much as 0.5 percent to $1,279.05 an ounce
and dropped 0.3 percent before trading little changed at $1,270.81 at
12:17 p.m. in Singapore. Prices declined to $1,260.61 on Oct. 11, the
lowest since July 11, on expectations that an agreement would be
reached. Gold for December was little changed at $1,269.50 an ounce on
the Comex.With the U.S.’s borrowing authority set to lapse Oct.
17, a deal to avert default and restore full government operations
continues to elude politicians. Senate Majority Leader Harry Reid said
he’ll press on with talks with Minority Leader Mitch McConnell after
negotiations between President Barack Obama and House Speaker John
Boehner broke down. Gold has dropped 24 percent this year as U.S.
economic growth quickened.“Over recent weeks, the price has been
influenced by what’s been happening in the U.S around their budget and
the shutdown,” said Alexandra Knight, an economist at National Australia
Bank Ltd. “It’ll continue to create volatility.”Gold is heading
for the first annual loss since 2000 on expectations that the Federal
Reserve will slow the pace of its $85 billion monthly bond purchases.
Holdings in the SPDR Gold Trust, the biggest bullion-backed
exchange-traded product, fell to 890.98 metric tons on Oct. 11, the
lowest since February 2009.
