Gold
fell on expectations that U.S. lawmakers will still manage to agree to lift the
debt ceiling before the government’s borrowing authority lapses tomorrow even
after the House of Representatives scrapped a vote on a plan.
Bullion
for immediate delivery lost as much as 0.6 percent to $1,275 an ounce and was
at $1,275.06 at 8:03 a.m. in Singapore. Prices dropped to $1,251.85 yesterday,
the lowest level since July 10, before closing 0.8 percent higher as the
negotiations stalled. Gold for December traded 0.2 percent higher at $1,276 an ounce
on the Comex in New York.
After
the House vote was scrapped, Senate Majority Leader Harry Reid, a Democrat, and
Minority Leader Mitch McConnell, a Republican, resumed talks to end the
impasse. Fitch Ratings put the U.S. on watch for a possible credit downgrade
yesterday, citing lawmakers’ inability to forge a deal while reiterating that
it expects the debt ceiling to be raised.
The
House scrapped the vote last night on a fiscal plan, according to
Representative Pete Sessions, chairman of the House Rules Committee. That bill
would have kept the government open through Dec. 15 and suspended the debt
limit until Feb. 7, 2014.
(Source: Bloomberg)
No comments:
Post a Comment