As the next fiscal year begins Tuesday, Oct. 1, the debate regarding how the government will cover federal spending is poised to push past the end of this month. Reuters reports demand for the yellowish metal was moving at a slower pace and the price of bullion has dropped roughly 20 percent thus far, putting in peril the precious metal's prospects of marking a 13th straight year of gains.
"We are seeing very slow demand as people are still bearish," dealing head Peter Fung with Wing Fung Precious Metals in Hong Kong told Reuters on Wednesday. "They are waiting for prices to fall below $1,300."
At 10:18 a.m. on Wednesday, gold futures edged up 0.13 percent, a $1.76 lift to $1,352.02 per troy ounce.
Questions remain about U.S. monetary policy, which also is prompting the yellowish metal to responding accordingly during the past several weeks as speculation mounted that the U.S. Federal Reserve was preparing to taper stimulus. But the body stopped short last Wednesday after two days of policy meetings.
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