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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.
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