Gold prices hit a three-month low of US$1272 per troy oz on October 11 as a 16-day US federal government shutdown – caused by dispute over the FY2014 budget – prompted an unexpected selloff. The political impasse has damaged US growth prospects and the US Federal Reserve has indicated that it could delay the tapering of QE3 asset purchases until early 2014. Much will depend on Q4 indicators.
Prices may receive support from robust Asian demand as investors seek a store of value amid elevated regional inflation.
First published: October 25, 2013.
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