Gold Prices Hold Steady as Dollar Eases and U.S. Shutdown Uncertainty Lingers
Gold prices held firm in Asian trading on Thursday, consolidating after a 1% surge in the previous session, as a softer U.S. dollar and ongoing uncertainty over the prolonged U.S. government shutdown supported demand for safe-haven assets.
Spot gold rose 0.2% to $3,988.79 per ounce by 00:37 ET (05:37 GMT), while U.S. gold futures edged 0.1% higher to $3,995.70. The metal had gained 1.3% on Wednesday, lifted by a risk-off mood across global markets amid renewed concerns over a potential stock market bubble.
Dollar Retreats as Markets Stabilize
The U.S. Dollar Index slipped 0.2% in early Asian trade as investors cautiously returned to risk assets following a brief selloff in technology stocks earlier in the week. Wall Street’s rebound on Wednesday helped calm fears about overheated valuations, easing short-term pressure on risk sentiment.
Still, the record-long U.S. government shutdown continued to cast a shadow over financial markets. The delay of multiple official economic data releases has left investors increasingly reliant on private-sector indicators, complicating efforts to assess the health of the U.S. economy.
Strong Labor Data Limits Fed Rate Cut Expectations
Fresh data reinforced confidence in a resilient U.S. labor market. ADP employment figures showed private payrolls rose by 42,000 in October, roughly double market forecasts.
The stronger reading reduced expectations that the Federal Reserve will cut interest rates in December, reinforcing the higher-for-longer rate outlook that often weighs on non-yielding assets such as gold.
Meanwhile, the U.S. Supreme Court began hearings on the legality of tariffs imposed under President Donald Trump, a case that could have long-term implications for trade, inflation, and supply chains.
“We remain positive on our gold outlook despite recent pullbacks, with central bank buying and safe-haven demand providing key support,” analysts at ING said. They added that geopolitical uncertainty continues to sustain investor interest in safe assets.
Metal Markets Trade in Tight Range
Other precious and industrial metals were mostly stable on Thursday.
Silver futures gained 0.2% to $48.12 per ounce, while platinum futures remained flat at $1,564.60.
In base metals, London copper futures rose 0.4% to $10,771.20 per ton, and U.S. copper futures added 0.6% to $5.02 per pound, reflecting moderate strength in industrial demand.
