Gold futures slid further below $1,300 U.S. an ounce on Friday, as a possible breakthrough in the Washington impasse continued to weigh on assets viewed as safe havens.
Gold for December delivery was last off $29, or 2.2%, to $1,267.90 U.S. an ounce, while December silver was down 61 cents, or 2.8%, to $21.29 U.S. an ounce.
There is no agreement yet to re-open the U.S. government or lift the debt ceiling, but investors are heartened that Republicans and Democrats are talking. The GOP has proposed a six-week extension for the debt limit.
Such an approach "does not actually resolve the budget crisis, and the new debt ceiling would doubtless also be reached again in the second half of November," said Commerzbank analysts in a note on Friday.
The analysts said that means "ongoing uncertainty" and might even result in the Federal Reserve resorting to "further expansionary monetary policy measures."
In economic news on Friday, traders will look for a preliminary October reading for a key consumer sentiment index. Other U.S. economic reports likely won’t come out due to the government shutdown.
On Thursday, December gold lost $10.30 and settled below $1,300 U.S. an ounce for the first time in more than a week.
