Gold prices extended gains in Asian trading Thursday, supported by a softer U.S. dollar and ongoing uncertainty surrounding the record-breaking U.S. government shutdown. The yellow metal’s resilience underscored investors’ search for stability amid economic and political turbulence.
Spot gold was last seen up 0.2% at $3,988.79 per ounce, while U.S. gold futures inched 0.1% higher to $3,995.70 as of 00:37 ET (05:37 GMT). This followed a 1.3% jump in the previous session, driven by global risk aversion and fears of a possible stock market bubble.
The U.S. Dollar Index slipped 0.2% on Thursday, giving bullion a modest lift. Wall Street’s recovery on Wednesday helped calm nerves after a brief tech-driven selloff earlier in the week. Yet, with the U.S. shutdown dragging into its longest stretch on record, market confidence remains fragile.
U.S. Shutdown Clouds Economic Outlook
The continued suspension of key government data releases has made it harder for investors to assess the health of the U.S. economy, increasing reliance on private-sector indicators. This data gap, combined with lingering fiscal uncertainty, has amplified gold’s appeal as a hedge against instability.
Fresh figures from ADP showed private payrolls rising by 42,000 in October, nearly double expectations. The report reaffirmed the labor market’s resilience, reducing bets that the Federal Reserve might cut interest rates in December. While higher-for-longer rates typically dampen gold’s appeal, risk aversion continues to offset that pressure.
Meanwhile, the U.S. Supreme Court’s hearings on Trump-era tariffs could have broad implications for trade policy. Any shift in tariffs could ripple through inflation and supply chains—key factors that shape investor demand for precious metals.
“We remain positive on our gold outlook,” noted ING analysts, citing strong central bank demand and persistent geopolitical risks as enduring supports for prices.
Metals Market Sees Limited Movement
Beyond gold, trading across other precious and industrial metals stayed subdued:
- Silver futures added 0.2% to $48.12 per ounce
- Platinum was nearly flat at $1,564.60 per ounce
- London copper inched 0.4% higher to $10,771.20 a ton
- U.S. copper futures rose 0.6% to $5.02 a pound
While short-term volatility remains likely, analysts suggest gold’s safe-haven role and central bank demand could keep it buoyant as global uncertainties persist.