Gold up from 3-month low as physical demand rises

NEW YORK (Oct 14)   Gold has rebounded today (October 14th), recovering from the three-month low reached on Friday.

Bullion declined at the end of last week on expectations US lawmakers were nearing a solution to the government shutdown and debt limit situation that threatens to see the country default on its debts.

However, discussions have stalled over the weekend and the precious metal has advanced in commodities markets, with physical demand rising at lower prices.

Gold for immediate delivery was trading 0.66 per cent higher in London at $1,281.20 per ounce as of 11:45 BST. Bullion for December delivery advanced by 0.6 per cent to $1,276.10 per ounce on the Comex in New York.

The US government has been shutdown since October 1st and is set to breach its borrowing limit by October 17th, leading to an unprecedented default on its debts, unless the country's two political parties can reach an agreement before this time.