Gold prices extended their rally on Thursday, with spot prices climbing 0.4% to $4,210.63 per ounce, as the U.S. government’s reopening offered renewed optimism yet underscored lingering economic concerns. Futures for December delivery steadied at $4,214.60/oz in early Asian trade, maintaining the metal’s steady upward trajectory through November.
The recent surge follows weeks of market turbulence sparked by the 43-day U.S. government shutdown, the longest in the nation’s history. Despite its resolution, investors remained cautious, citing fragile labor data and a slowdown in private sector activity as signs of an uneven recovery.
Central banks, particularly in Asia, have played a key role in stabilizing gold’s momentum. The People’s Bank of China added to its reserves for the 12th consecutive month in September, reinforcing long-term demand for bullion as a hedge against currency risks.
Economic Uncertainty Fuels Safe-Haven Demand
President Donald Trump signed the bill to reopen the government late Wednesday, restoring funding and paving the way for the release of delayed economic data. Analysts predict the figures for October and November will highlight the fiscal and productivity toll of the shutdown, estimated by Trump at $1.5 trillion in economic losses.
According to ANZ analysts, expectations of weaker U.S. data, coupled with resilient central bank buying, are key drivers supporting gold’s strength. The market now sees a 50.4% probability of a 25 basis-point rate cut by the Federal Reserve in December—down from 62.4% just a day earlier, data from the CME FedWatch Tool shows.
Key factors supporting gold’s climb:
- Sustained central bank accumulation, especially in China
- Reduced Fed rate cut expectations but persistent economic caution
- Ongoing geopolitical and fiscal uncertainty driving safe-haven flows
Broader Metals Market Gains Momentum
The rally extended beyond gold. Spot silver surged 1.7% to $54.17/oz, while platinum inched up 0.1% to $1,620.15/oz, reflecting investor confidence in the metals complex.
Industrial metals also benefited from renewed optimism. Copper prices rose 0.2% to $10,933.80 per ton on the London Metal Exchange, with COMEX copper gaining 0.7% to $5.1215 per pound. The metal found support from expectations that the U.S. reopening will ease business disruptions and from China’s new five-year economic plan, which prioritizes infrastructure investment and industrial expansion.
As the world’s largest economy regains momentum, the interplay between government policy, interest rates, and global demand continues to shape the precious metals outlook heading into year-end.
