Gold Falls as Equities, Commodities Drop on U.S. Deadlock

Gold market update for September 30th: Gold futures are down nearly $20 per ounce in COMEX trading this Monday. However, gold is set for its first quarterly increase in over a year, but that’s off a 34-month low of $1180 set in late June. But on the last day of the quarter, a looming shutdown (partial) of the U.S. federal government is sending gold, as well as stocks and commodities, lower. “This is general asset liquidation, and people want to be on the sidelines because of the uncertainty,” comments Frank McGhee, head dealer at Integrated Brokerage Services LLC in Chicago. The first partial government shutdown in 17 years is being precipitated by a deadlock in Washington over the spending measures that are set to expire at midnight tonight. At the heart of the issue is funding for the Affordable Care Act – House Republicans are demanding changes to the law while Senate Democrats and President Obama are vowing to not let that happen. If lawmakers and the President fail to pass a stopgap funding measure by midnight tonight, over 800,000 federal workers will be told to stay home starting tomorrow. Read more…