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Threat of Govt. Shutdown Weighs on Gold & Silver Prices

Gold and silver spot suffered Monday morning as investors made their displeasure at the U.S. government’s failure to come to a budget agreement known. Analysts had earlier predicted that an agreement would be worked out over the weekend, allowing giving investors some peace of mind during the last trading session of the 3rd quarter, but President Obama and legislators have been unable, or unwilling, to come to any sort of a compromise as of yet.

As of 11am CST gold and silver prices were both down substantially for the day, with gold posting a 0.9% loss ($7.80) to $1329.40, while silver fell 0.5% ($0.12) to $21.50 per ounce on the COMEX division of the New York mercantile Exchange (NYMEX). Gold and silver projections for the week are mixed, with the outcome of the U.S. government’s budget battle the leading factor according to the majority of precious metal market analysts.

Some analysts have cited that although the first government shutdown in 17 years is a weighty factor for gold investors, the fact that our government will officially reach its borrowing limit on or around October 15 is something that could hold prices down for the next couple of weeks unless progress is made.

Other analysts have countered with the fact that the U.S. government’s problems could lead to more safe-haven buying as wealth-preservation investors seek to move funds away from the dollar and dollar-backed assets and into a more independent investment vehicle. These same analysts also predicted that since Monday is the last trading day of the 3rd quarter there could be some unexpected buying by investors who want to conduct some last-minute trades before October begins.

GoldSilver.org is proud to carry the gold and silver spot prices live on its website 24/7, and investors who have questions about buying and/or selling gold and/or silver are encouraged to take a free copy of our Gold & Silver Investment Guide by clicking below or by calling us toll-free at 800-394-3337 and requesting a free hard copy.

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