Gold scores first quarterly gain in a year

MarketWatch (01/10) SAN FRANCISCO — Gold futures closed lower on Monday as investors mulled the possibility of a U.S. government shutdown and its impact on demand for the precious metal, but prices have gained more than 8% since the end of June — their first quarterly gain in a year. Gold for December delivery fell $12.20, or 0.9%, to settle at $1,327 an ounce on the Comex division of the New York Mercantile Exchange. Based on the most-active contracts, gold futures suffered monthly loss of about 5%, but jumped 8.4% for the quarter. The quarterly gain was the first since the quarter ended Sept. 28, 2012. As of Monday’s close, gold futures have lost roughly 21% this year to date. The Republican-led House voted Sunday to delay President Barack Obama’s health-care law by one year. If Republicans and Democrats can’t agree on a budget by the Tuesday-morning deadline, many government offices will close. Gold often finds support as a safe-haven investment in times of uncertainty. But Yves Lamoureux, president of Lamoureux & Co., a market advisory firm based on behavioral economics, pointed out that “a government shutdown is very disinflationary by nature and is not a gold driver.” Gold, instead, is often seen as a hedge against inflation. http://www.marketwatch.com/story/gold-perks-up-as-us-government-shutdown-looms-2013-09-30