Gold price momentum fades hours ahead of US gov. shutdown, China's vacation week

A massive chunk of Asian demand will therefore be absent from the bullion marketplace from October 1 – 7, giving investors pause despite the debt drama in the US.

While today's budget deadline in Washington to fund government services has some serious implications, the more crucial moment for US and global economy is October 17, when the United States government must meet its annual debt obligations.

Kitco's technical analysis sees gold in a short-term holding pattern, and if gold is going to break out, it will likely happen closer to the October 17 deadline, in response to this current atmosphere of political brinkmanship.

The Republicans in the US House of Representatives, by demanding a delay of the Affordable Care Act before agreeing to fund government spending increases, are playing a risky game. The GOP is increasingly perceived as the party responsible for an impasse that could threaten US economic recovery.

 

Read More: www.mining.com/gold-momentum-fades-hours-ahead-of-chinas-vacation-week-us-gov-shutdown-43466/

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