Gold set to end week lower but U.S. shutdown stems losses

Reuters, (4/10) -- Gold is set for its worst weekly performance in three weeks but declines have been kept in check by a partial U.S. government shutdown that threatens to hurt economic growth, increasing bullion's safe-haven appeal. The metal's 1.5 percent loss for the week so far was largely due to a single massive Comex sell order on Tuesday that sent prices below $1,300 an ounce, but it quickly recovered as the budget impasse in Washington dragged on.  Spot gold was holding steady at $1,316.75 an ounce by 0024 GMT. The shutdown of the U.S. government appeared likely to drag on for another week and possibly longer as lawmakers consumed day three of the shutdown with a stalling game and there was no end in sight until the next crisis hits Washington around Oct. 17.   U.S. monetary policy is being kept easier to help offset the harm caused by political fighting in Washington, according to two senior Federal Reserve officials who warned on Thursday of damaging consequences if the nation defaults on its debt. Turkey's 2013 jewellery exports are expected to increase by 20 percent this year to $2.5 billion, due to strong demand from markets including the Middle East, the head of the Jewellery Exporters' Association said. SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.20 percent, or 1.8 tonnes, to 899.99 tonnes on Thursday.