Gold ends lower for third straight day
Bullions ended lower on Thursday, 03 October 2013 at Comex. Gold futures closed modestly lower to log their third losing session in four as the U.S. government shutdown stretched to a third day. As the trading day progressed bargain hunting and safe-haven buying interest were featured. Focus of the market place continues to be on the partial closure of the U.S. government.
Gold for December delivery fell $3.10, or 0.2%, to settle at $1,317.60 an ounce on the Comex division of the New York Mercantile Exchange.
December silver fell 11 cents, or 0.5%, to end at $21.79 an ounce.
The partial U.S. government shutdown is in its third day on Thursday. On Thursday afternoon it appeared there was just a little movement from the U.S. Speaker of the House Boehner toward compromise. But much more movement is need from Congress to get this budget issue resolved quickly. There is growing anxiety in the world market place but no panic yet. However, if the U.S. lawmakers' impasse drags on over the weekend and into next week, trader and investor anxiety will increase dramatically. And if confidence in the market place continues to wane, the odds will grow price volatility will increase in many markets.
Some U.S. government reports have been postponed due to the government furloughs, including Friday's monthly employment report. Non-government U.S. economic reports will be issued as scheduled.
A weaker ISM non-manufacturing report for the U.S. released Thursday did also help to lift gold and silver prices up from their daily lows. The September ISM Non-Manufacturing Index fell to 54.4 from 58.6 while the consensus expected the index to drop to 57.2. Last month's reading of the ISM Non-Manufacturing Index was the highest since December 2005 and was expected to pullback in September. The size of the pullback; however, was very unusual.
Reports overnight said China's official non-manufacturing purchasing managers' index rose to a six-month high of 55.4 in September, from 53.9 in August. Meantime, the Markit European Union PMI rose to 52.2 in September from 51.5 in Augustthe fastest growth pace in over two years for the EU. Any PMI reading above 50.0 suggests economic growth.
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