Gold Drops to Three-Month Low as U.S. Impasse Seen Ending

[alp227]

Source: Bloomberg

Gold tumbled to a three-month low on speculation that U.S. lawmakers will reach an agreement to increase the nation’s debt limit and end a government shutdown, curbing demand for bullion as a store of value.

President Barack Obama and House Republican leaders were moving toward an agreement to extend the nation’s borrowing authority as they remained at odds over terms for ending the partial government shutdown. A settlement would put the world’s largest economy back on track for recovery and potentially pave the way for the Federal Reserve to reduce monetary stimulus. Gold has dropped 24 percent this year as U.S. growth quickened.

“A deal in the making and eventual slowing of the stimulus are very negative for gold,” Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago, said in a telephone interview. Prices also dropped as “we saw heavy technical selling come in, with several stop-losses being triggered.”

Gold futures for December delivery fell 2.2 percent to settle at $1,268.20 an ounce on the Comex at 1:49 p.m. in New York, after touching $1,259.60, the lowest for a most-active contract since July 10. Prices capped a second straight weekly retreat.

Read more: http://www.bloomberg.com/news/2013-10-11/gold-fluctuates-below-1-300-on-optimism-over-u-s-debt-deal.html

[munster69]

1. Gold was a bubble at 1800 just like the DOW is now

Bubbles deflate, its the nature of things.

[xfundy]

2. Nonsense! Glen Beck would have warned me!

[BillyRibs]

3. Silver prices did go up like gold's did,

Traditional pricing for silver is 1/17 the price of gold. If that goes to far out of what is the normal their is a bubble.

[jakeXT]

4. Finally free markets, China is probably buying with both hands

A shutdown casualty: It’s lonely at the CFTC these days

It’s lonely at the Commodity Futures Trading Commission these days.

There’s about 30 people at work each day at the CFTC, compared to a regular crowd of about 680.

“Commissioners are there,” said CFTC commissioner Scott O’Malia, “but it is awfully lonely there.”

O’Malia (he’s the CFTC commissioner with shorter, and less golden, hair than Bart Chilton), was speaking Thursday at an Investment Company Institute conference in New York. He had taken the 5 a.m. train from D.C., where the government’s partial shutdown was dragging into its second week.

http://blogs.marketwatch.com/capitolreport/2013/10/10/a-shutdown-casualty-its-lonely-at-the-cftc-these-days/

China stocks up on gold as price tumbles

September 16, 2013

THEY'LL be clinking champagne glasses at the People's Bank of China after reading Goldman Sachs's latest gold forecast. The Chinese central bank will be looking forward eagerly to filling more of its vaults with the metal at bargain basement prices.

Jeffrey Currie, head of commodity research at Goldman, says the yellow one could fall below $US1000 an ounce and the bank's target average for 2014 is $US1050 an ounce.


http://www.theaustralian.com.au/business/opinion/china-stocks-up-on-gold-as-price-tumbles/story-fnciihm9-1226719585633

[roamer65]

5. Chinese buying gold equals dumping dollars.