Gold Falls 3 Percent on Hopes for Limited Shutdown

NEW YORK (AP) -

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.

Grain futures were mostly lower Tuesday on the Chicago Board of Trade.

Wheat for December delivery rose 2.75 cents to $6.8125 a bushel, December corn fell 2.50 cents to 4.39 a bushel, December oats were 4.25 cents lower at $3.15 a bushel and November soybeans declined 14.75 cents to $12.68 a bushel.

Beef was mixed on the Chicago Mercantile Exchange.

December live cattle fell .07 cents to $1.3190 a pound, while November feeder cattle rose .85 cents to $1.6605 a pound.