Investing.com - Gold futures were little changed during European
early afternoon trading hours on Friday, as investors continued to
focus on developments in the U.S. after the government was forced
to shut down this week due to Congress' failure to reach an
agreement on the new budget.
On the Comex division of the New York Mercantile Exchange, gold
futures for December delivery traded at USD1,3317.20 a troy ounce
during European afternoon hours, down 0.03%.
The December contract ended 0.23% lower on Thursday to settle at
USD1,317.60 a troy ounce.
Gold futures were likely to find support at USD1,302.30 a troy
ounce, Thursday's low and resistance at USD1,337.80, the high from
Demand for the safe haven precious metal remained supported as
investors continued to weigh the implications of a protracted U.S.
On Thursday, disappointing U.S. service sector data added to
concerns that the shutdown in Washington could have wider
consequences on the U.S. economy.
The Institute of Supply Management said its non-manufacturing
purchasing manager's index fell to a three-month low of 54.4 in
September from a reading of 58.6 in August. Analysts had expected
the index to decline to 57.4 last month.
The U.S. Labor Department on Thursday said the employment report
for September will not be released as scheduled on Friday due to
the government shutdown. It said a new release date had not been
Gold traders have closely been looking out for U.S. data reports
recently to gauge if they will strengthen or weaken the case for
the Federal Reserve to reduce its bond purchases.
Markets were also considering how the U.S. political deadlock will
impact negotiations to raise the U.S. debt ceiling, which the U.S.
Treasury Department has estimated will be reached by October 17.
Speaking overnight, International Monetary Fund head Christine
Lagarde said the failure to raise the U.S. debt ceiling could hurt
the global economy and warned U.S. growth could drop below 2% this
Elsewhere on the Comex, silver for December delivery slid 0.34% to
trade at USD21.712 a troy ounce, while copper for December delivery
eased 0.03% to trade at USD3.268 a pound.
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