Gold price bounces right back on debt ceiling, jobs data

After a dismal Tuesday performance, gold had clawed back $28 of yesterday's $40 in losses, reaching $1,316 by 5 pm EST on weaker-than-expected jobs data and the US debt ceiling drama.

The most recent ADP jobs report showed 166,000 new US private sector jobs, 14,000 less than the predicted 180,000 for the month of September.

The US government is now in shutdown and with the October 17 debt ceiling deadline just around the corner, many investors saw the lower price point as a big opportunity.

Although an 'exasperated' President Obama has agreed to meet congressional leaders Wednesday afternoon, there are no signs that either side is willing to budge.

Wall Street business leaders are increasingly siding with the president and losing patience with many House Republicans, who are using their opposition to Obamacare – legislation already passed by congress and upheld in the Supreme Court – as justification for the budget standoff.

If the Congress is unable to reach a budget deal before October 17, the US would default on its debt, potentially receiving a further downgrade to its credit rating.