West Texas Intermediate fell a third day as the U.S. government began its first partial shutdown in 17 years, threatening to slow the economy and curb fuel use.

Futures dropped as much as 1 percent after lawmakers failed to approve a funding bill. No further negotiations were immediately planned and both sides still disagree over raising the nation’s debt ceiling to avoid a first-ever default after Oct. 17. A government report tomorrow may show crude supplies rose last week as refineries idled units for seasonal maintenance, according to a Bloomberg survey.

WTI crude for November delivery fell 99 cents, or 1 percent, to $101.34 a barrel at 10:55 a.m. on the New York Mercantile Exchange. WTI decreased 0.5 percent yesterday to the lowest close since July 3. The volume of all futures traded was about 33 percent below the 100-day average. Prices increased 6 percent last quarter.

Brent oil for November settlement slipped $1.15, or 1.1 percent, to $107.22 a barrel on the London-based ICE Futures Europe exchange. Volume was 6.2 percent above the 100-day average. The European benchmark was at a premium of $5.88 to WTI futures, compared with $6.04 yesterday.

Contrary to expectations, after a partial suspension of the U.S. government's gold does not receive support in the form of a demand for " safe haven ." On the contrary, after experiencing a short-term upward trend line price of gold dropped significantly, and we can talk about the continuation of the trend that has occurred since the end of August.

At the moment, the price of gold has received support at the lows on September 18 - in 1290 dollars per troy ounce.

While it turns out that the political opposition in the United States led to a decline in demand for gold. This is explained by the fact that in a slowing economy (which is possible ) Fed policy will remain challenging, possibly up to 2014 , and the demand for gold will decline.

The weakening of the U.S. dollar did not result in a reversal of the price of gold - in contrast to the usual relationship , when the decline of the dollar leads to an increase in prices expressed in its raw material assets .

Recall that during the suspension of U.S. government agencies in the winter of 1995-1996 gold, while costing less than $ 400 per ounce, which added about 3 percent, and in the course of negotiations to raise the upper limit of the debt in 2011 , when the agreement was reached at the last moment , the price reached a historic high of $ 1,920 .

The cost of the October gold futures on COMEX today dropped to $ 1286.00 per ounce.

GOLD 1,328.40 -10.00 -0.75%

OIL (WTI) 102.29 -0.58 -0.56%