Prices drop on a weekly basis too
Bullion metals closed lower on Friday, 04 October 2013. Gold prices closed lower on Friday, held down by dollar strength to lose more than 2% for the week after having been batted around by the U.S. government shutdown and debt-ceiling worries.
Gold futures for December delivery fell $7.70, or 0.6%, to settle at $1,309.90 an ounce on the Comex division of the New York Mercantile Exchange after having touched a high of $1,326 in electronic trading. The contract lost 2.2% for the week.
December silver fell 3 cents, or 0.2%, to $21.75 an ounce to lose 0.4% for the week.
The U.S. government largely has been shut down for four days after Congress failed to pass a spending bill for the new federal fiscal year, which began last Tuesday.
Though logic would suggest that a shutdown would generate safe-haven bids for the precious metal, the closure suggests that the Federal Reserve may not decide to taper its bond-buying program at its next meeting later this month. The program has been a supportive factor for gold.
In the currency market on Friday, the dollar index rose by 0.5%.
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