Gold Prices Slip as Traders Eye U.S. Reopening and Fed Rate Decision
Gold prices edged lower in Asian trade on Wednesday, pausing after a two-day rebound as rising risk appetite reduced demand for safe-haven assets. Optimism over a potential end to the U.S. government shutdown supported equities, while uncertainty around the Federal Reserve’s next rate move weighed on gold.
Spot gold fell 0.5% to $4,108.36 per ounce, while December gold futures dipped 0.1% to $4,114.30 per ounce by 23:42 ET (04:42 GMT). The U.S. dollar also regained strength in Asian trading, further pressuring bullion prices.
Investors were also closely monitoring the U.S. Supreme Court’s review of President Donald Trump’s trade tariffs, though analysts said a final ruling was unlikely soon.
Among other precious metals, spot platinum slipped 0.2% to $1,583.90 per ounce, while spot silver declined 0.3% to $51.10 per ounce, trimming part of this week’s earlier gains.
Markets Focus on U.S. Government Reopening Vote
Risk sentiment improved after the U.S. Senate passed a measure to restore government funding and end the record 42-day shutdown. The bill now heads to the House of Representatives, which is expected to approve it before being sent to President Trump for final sign-off.
Expectations that the government will reopen within days boosted optimism in global markets, leading to a pullback in safe-haven assets like gold. Still, the yellow metal held above the key $4,000 level, supported by lingering uncertainty over U.S. interest rates and trade policy.
Rate Cut Uncertainty Keeps Traders Cautious
Debate within the Federal Reserve over a potential December rate cut also influenced market sentiment. According to the Wall Street Journal, policymakers remain divided, especially as delayed economic data from the shutdown clouds visibility on inflation and labor trends.
The end of the shutdown is expected to unlock new economic data, helping clarify the outlook ahead of the Fed’s December 10–11 meeting. Still, expectations for a 25-basis-point rate cut rose to 62.4%, up from 57.8% the day before, according to CME FedWatch.
Despite this week’s pullback, gold continues to trade near multi-month highs as investors balance rate-cut expectations, tariff uncertainty, and broader economic risks.
