Gold and Silver Fail to Gain Momentum During Government Shutdown
On Tuesday, gold (NYSEARCA:GLD) futures for December — the most active contract — edged 50 cents lower to close at $1,324.60 per ounce, while silver (NYSEARCA:SLV) futures gained 6 cents to finish at $22.44. Major exchanged-traded funds, like the SPDR Gold Trust and the iShares Silver Trust, also closed relatively unchanged.
The markets continue to remain focused on the U.S. Government, and its inability to reach a deal over the budget and debt ceiling. Republicans proposed a new committee to address the fiscal issues facing America, while President Obama repeated that he will not negotiate until the government shutdown and debt ceiling are dealt with first.
“We can’t make extortion routine as a part of our democracy, democracy doesn’t function this way,” Obama told reporters at the White House. “We’re not going to calm creditors until they see speaker Boehner call up a bill that reopens the government and authorizes the secretary of the Treasury to pay our bills on time, and until they see that, there’s going to be a cloud over U.S. economic credibility.”