Gold falls 3 percent on hopes for limited shutdown

AP News
Posted: Oct 01, 2013 5:30 PM

The price of gold slumped to its lowest level in nearly two months as investors hoped that a partial shutdown of the U.S. government would be short-lived.

A relatively quick resolution to the standoff, and to a separate conflict over raising the country's borrowing limit, would diminish the appeal of gold as a safe haven.

Gold for December delivery dropped $40.90, or 3.1 percent, to $1,286.10 an ounce, the lowest since Aug. 7. Gold has fallen 23 percent this year and is on track for its first annual loss since 2000.

Prices for other metals also fell. Energy prices mostly fell.

Crop futures were mixed a day after corn slumped to its lowest in more than three years after a government estimate of corn stocks came in higher than expected.