CHICAGO, Oct. 1 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange on Tuesday reported the biggest decline since June 26 and closed at a nearly two-month low as the U.S. government shuts down.
The most active gold contract for December delivery dropped 40. 9 U.S. dollars, or 3.08 percent, to settle at 1,286.1 dollars per ounce.
It is widely believed that the U.S. government shutdown will be short-lived, with only minimal impact on the broader economy, and will not change the Federal Reserve's timetable on retreating from its quantitative easing monetary policy.
However, if the impasse persists within the next 17 days, it could produce a negative impact on the U.S. dollar and may lead to a downgrade in the U.S. sovereign credit rating, eroding the world 's confidence in the U.S. economy and pushing up gold, market analysts said.
Silver for December delivery lost 53.3 cents, or 2.46 percent, to settle at 21.175 dollars per ounce. Platinum for January delivery shed 27.1 dollars, or 1.92 percent, to 1,385.3 dollars per ounce.
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