Gold gets no boost from U.S. debt deal

LOS ANGELES (MarketWatch) — Gold futures drifted lower on Thursday, failing to get a lift from a deal reached to put the U.S. government back to work after 16 days of shutdown.

Gold for December delivery GCZ3 -0.46%  was off $2.70, or 0.2%, to $1,279.60 an ounce in electronic trade. Silver SIZ3 -0.70%  gave up 3 cents to $21.34 an ounce

A day earlier, gold futures hit their highest level since Oct. 10 after U.S. senators reached a deal to end the impasse and raise the nation’s debt limit. Congress late Wednesday approved the Senate deal to reopen federal operations and finance the government until Jan. 15.

AFP/Getty Images

Gold futures decline after U.S. debt-limit battle ends.

INTL FCStone analyst Edward Meir said with gold prices coming off a fresh series of lower lows along with money pouring out of the SPDR Gold Trust GLD +0.18% , it’s a tough climate for gains, regardless of what’s going on in Washington.

“About the only source of support for gold could from the Federal Reserve meeting slated for next week; the central bank will likely stand pat again this month and thus offer prices a modicum of support in what otherwise is a very unfriendly background,” he wrote.

Elsewhere in metals trading, December high-grade copper HGZ3 -0.80%  sagged one penny to $3.30 a pound, while January platinum PLF4 -0.12%  added $2.90, or 0.2%, to $1,401.10 an ounce. December palladium PAZ3 +0.36%  gained $2.35, or 0.3%, to $715.90 an ounce. 

Shawn Langlois is an editor and columnist for MarketWatch in London. Follow him on Twitter @slangwise.
http://www.marketwatch.com/story/gold-gets-no-boost-from-us-debt-deal-2013-10-17=====================================================================
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