Gold hits 8-week low over U.S. shutdown
Gold dropped below $1,300 per ounce Tuesday, hitting its lowest since early August, as investors dumped precious metals and fled to cash amid worries over the U.S. government shutdown.
Spot gold slid 3% to $1,286 per ounce. For the second session in a row, gold futures for December delivery were recently down 2.3%, or $30, at $1,297 per ounce, after Congress failed to reach agreement and pass a spending measure by a midnight deadline, allowing most federal services to shut down today.
Analysts are warning that a prolonged shutdown will hinder U.S. economic growth.