Gold near one-week high as US budget deadlock persists

London, Oct 8. Gold today traded near the highest level in almost a week as investors weighed a US political stalemate that extended a government shutdown. Gold added 0.2 per cent to USD 1,325.28 an ounce after reaching USD 1,329.11 yesterday, a highest since October 1. Silver, however, lost 0.1 per cent to USD 22.35 an ounce. Non-essential US government services have been closed for a week as politicians try to pass a budget. US President Barack Obama reiterated he won't negotiate with Republicans over the borrowing limit, as Treasury Secretary Jacob J Lew warned the US may be unable to pay its bills after October 17. Gold is set for the first annual drop in 13 years as some investors lost faith in the metal as a store of value and on speculation the Federal Reserve will slow debt purchases. Gold holdings in exchange-traded products rose 0.1 tonnes from a three-year low to 1,922.5 tonnes yesterday.