Gold Prices Edge Up amid Dollar Weakness and U.S. Government Shutdown

Gold prices rose modestly on Thursday after the U.S. dollar declined from a four‑month high amid growing investor concern over the ongoing U.S. government shutdown.

By 04:27 GMT, spot gold had inched up about 0.1 % to US$3,986.23 per ounce, after having slid roughly 9% since its record high of US$4,381.21 on October 20.

Meanwhile, U.S. gold futures for December delivery were trading around US$3,994.60 per ounce.

Dollar Weakness Bolsters Gold’s Attraction

A weaker U.S. dollar typically benefits gold because it makes bullion cheaper for holders of other currencies. The dollar index fell about 0.2% after hitting a four‑month high in the previous session.
According to Tim Waterer, Chief Market Analyst at KCM Trade, “The dollar has nudged a bit lower … which has made the task easier for gold in terms of gaining traction to the upside.”

Government Shutdown, Rate‑Cut Speculation & Macro Data

Investor sentiment remains cautious amid the longest U.S. government shutdown on record, which could cloud growth prospects and complicate the Federal Reserve’s treatment of macro‑data.
At the same time, stronger‑than‑expected private‑sector employment numbers—42 000 jobs added in October versus a forecast of 28 000—have dampened hopes for imminent rate cuts.

Last week the Fed cut interest rates, but Chair Jerome Powell indicated it might be the final reduction in 2025.
Reuters
Market participants now assign roughly a 63% chance of a December rate cut, down from over 90% a week ago.
Because gold does not yield interest, its appeal tends to increase when real interest rates are low or falling.
Other Precious Metals

Beyond gold, other precious metals saw mixed activity: spot silver rose about 0.3% to US$48.22 per ounce; platinum fell 0.7% to US$1,550.91; and palladium gained 0.2% to US$1,422.23.

What It Means for Investors