Gold swings on debt limit concern as shutdown extends

London, Oct 7. Gold today swung between gains and losses as investors weighed the outlook for a US debt limit extension as the government shutdown continued and slowing physical demand for the metal. Gold was little changed at USD 1,310.76 an ounce, after falling 0.2 per cent and rising 0.6 per cent. Silver lost 0.2 per cent to USD 21.69 an ounce. The first partial government shutdown in 17 years began October 1, delaying economic releases, including monthly job data that was scheduled for October 4. Gold is set for the first annual drop in 13 years and holdings in gold-backed exchange-traded products are at a three-year low as some investors lost faith in the metal as a store of value and on speculation the Federal Reserve will slow debt purchases. Bullion rose 21 per cent from a 34-month low set in June as lower prices boosted demand for jewellery and bars, particularly in Asia.