Gold Prices On The New York Mercantile Exchange Hit A Two Month Low.

On Tuesday, the US federal government closed down because of the failure to obtain Congressional Budget authorization. The absence of government expenditure led to a rapid increase in deflation market expectations. Gold prices fell sharply to the lowest price in nearly two months without the support of hedging demand. Some market participants pointed out that the large-scale sell-off of funds further accelerated the decline in gold prices, and the main gold contract fell sharply at 1286.10 dollars per ounce.

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< p > the New York Mercantile Exchange's main gold contract in December fell $40.90, or 3.1%, at $1286.10 an ounce.

This is the lowest closing price of the main contract since August 7th and the largest single day decline since June 26th.

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< p > the main contract fell by 0.9% at 1327 dollars per ounce on Monday, although it was about 5% decline in September, but it has risen 8.4% in the third quarter, the first quarterly rise since the end of September 2012.

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< p > > a href= "http://www.91se91.com/news/index_c.asp" > HC < /a > the director of Wayne White company, a href= "http://www.91se91.com/pioneer/" > Geoffrey White < /a > (effrey effrey), pointed out that "gold price has experienced a short-term crash in the absence of hedging demand.

The short-term closure of the government will only have a minimal impact on the wider economy, and will not change the timetable for the fed to reduce the scale of quantitative easing projects.

He stressed that "a bigger battle is the debt ceiling problem after two weeks. If there is no agreement to raise this limit, the gold hedging demand will come from all sides, and it should also lead to a significant change in the US dollar exchange rate."

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< p > but Geoffrey White also stressed that if the budget confrontation is delayed until next week, "the dollar exchange rate will have a negative impact and enhance the demand for gold and other risk aversion assets."

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Christopher Blasi, President of Neptune Global Holdings, said in a report on Tuesday that the fall in gold prices on the day was not too unexpected. The collapse of gold prices was due to deflationary spending cuts resulting from the closure of the government by P, Christopher.

He stressed that the threat to the real danger of the financial system in the past will continue to be deflation in the future.

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< p > < a > href= > http://www.91se91.com/news/index_c.asp > > Gold > /a > is usually regarded as a hedge against inflation. Therefore, it will be disadvantageous in deflation.

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< p > Christopher Brahim further points out that the Federal Reserve wants to see inflation, but has not seen the anticipated development after various forms of quantitative tightening measures have been used. "The breadth of the current situation has been shown in the collapse of the gold price caused by the government shutdown. Therefore, the Federal Reserve is not only to maintain the stimulus measures, but it may also increase strength in the near future."

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< p > other metal prices, the December silver contract fell 53 cents on Tuesday, closing at $21.175 an ounce, or 2.5%, and silver prices fell 7.7% in September 2013 and 11.5% in the third quarter.

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Copper fell 5 cents, or 1.5%, at $3.27 a pound on Tuesday P December.

Copper prices have risen 2.8% since September and 8.7% in the third quarter.

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In January, platinum fell $27.10 on Tuesday, closing at $1385.30 an ounce, down 1.9%, rising 7.5% and 5.4% in the September and third quarter respectively, while palladium fell $8.25 in December, which fell to 1.1% at an ounce of $718.90, rising by 0.5% and 10% in the past month and a quarter, respectively.

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