Gold futures sank well below the threshold price of $1,300 per troy ounce on Friday as a focus trained on whether lawmakers in the U.S. will be able to agree on a deal to increase the debt ceiling, according to Bloomberg.
The yellowish metal was diving toward a weekly loss of roughly 1.5 percent. Thus far this year, bullion is down about 23 percent and the annual-gains streak is in peril at 12 with two-plus months remaining in the calendar year. The debt ceiling debacle comes as the U.S. finishes its second week of enduring a partial government shutdown.
"Gold fell on optimism over a short-term U.S. debt ceiling extension," states a note authored by analyst James Steel with HSBC Securities Inc., according to Bloomberg. "The path of least resistance appears to be lower for gold."
At 10:09 a.m. on Friday, gold futures fell 1.56 percent, a $20.07 loss to $1,267.53 per troy ounce.
Reuters reports the Friday performance of the U.S. dollar impacted the precious metal as the greenback grew stronger. The dollar and the yellowish metal typically perform the inverse of one another.
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