Weaker gold price affects Australian stocks

The price of gold has fallen and this has had an impact on Australian stocks today (October 10th).

With trading volume subdued over the course of the session, the benchmark S&P/ASX 200 closed down 0.1 per cent at 5147.1.

The ongoing US government shutdown is continuing to weigh heavily on Australian stocks and they were also affected by domestic employment data, reports the Australian.

Shaw Stockbroking senior investment adviser Shawn Hickman explained investors have been "restrained" with their trading in the last few sessions.

"The market is getting ready to rally," he said, adding: "A lot of clients put a third of their money in the market yesterday (Tuesday) and, on any selloff, they want to buy more."

Although some analysts may have believed the price of gold would have risen as investors flocked to the traditional safe haven while the US government shutdown continues, this has not been the case so far.

When the shutdown began on October 1st, spot gold bounced back with a small rise.

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