Gold Fluctuates as Investors Weigh Fed Taper Bets, U.S. Budget

LONDON (Sept 27)  Gold swung between gains and losses as investors weighed speculation that the Federal Reserve may taper stimulus after an unexpected decline in U.S. jobless claims against the risk of a possible government shutdown. Platinum slumped to the lowest level since July.

Bullion for immediate delivery lost and advanced at least 0.3 percent before trading little changed at $1,325.81 an ounce at 2:42 p.m. in Singapore. Bullion in London is on course for the first monthly loss since June. Gold for December delivery climbed 0.2 percent to $1,326.20 an ounce on the Comex.

First-time claims for unemployment benefits dropped by 5,000 to 305,000 last week, Labor Department data showed yesterday, compared with the 325,000 median projection in a Bloomberg survey. Gold has dropped 21 percent this year as speculation increased that the Federal Reserve will curb its $85 billion in monthly bond purchases and equities rallied.