Gold holds up as US strikes deal to end budget impasse

Source : REUTERS
Last Updated: Thu, Oct 17, 2013 04:09 hrs
An employee arranges gold jewellery in the counter as her arm is reflected in the mirror at a gold shop in Wuhan

​Gold was little changed on Thursday as U.S. lawmakers moved closer to passing a deal that would end a two-week long government shutdown and deflect the country from defaulting on its debt.


Spot gold had eased 0.03 percent to $1,280.61 an ounce by 0007 GMT, while U.S. futures slipped 0.1 percent.

U.S. Senate leaders announced a deal to end the budget impasse. But the agreement offers only a temporary fix until January 15, raising the possibility of another government shutdown.

Demand for U.S. gold coins has surged in October, reversing recent weak sales, boosted by bargain-hunting as prices plunged below $1,300 an ounce and some safe-haven buying due to the U.S. budget impasse.

Canadian miner Kinross Gold Corp will keep its main expansion in Africa's Mauritania on hold to 2015, no matter how far the gold price rises, as it plans to save rather than spend for now, its chief executive told Reuters.

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 3.6 tonnes to 885.53 tonnes on Wednesday.


U.S. stocks closed more than 1 percent higher on Wednesday, while the dollar gained on hopes of a debt deal.

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