Gold Prices Surge Above $4,000 as Dollar Weakens and Shutdown Nears End
Gold prices climbed sharply in Asian trading on Monday, breaking back above the key $4,000 per ounce level as the U.S. dollar softened. Investor attention remained focused on Congress’s efforts to end the prolonged U.S. government shutdown, now approaching its resolution.
The yellow metal also benefited from ongoing speculation that the Federal Reserve could cut interest rates in December. However, market participants remain cautious, awaiting stronger economic signals before confirming that expectation.
By 23:43 ET (04:43 GMT), spot gold was up 1.4% at $4,053.72 per ounce, while December gold futures rose 1.3% to $4,062.45 per ounce.
Weaker Dollar Supports Gold and Metals
Gold and other precious metals advanced as the U.S. dollar extended its mild decline from the previous week. A weaker dollar typically boosts demand for dollar-priced commodities, making them more attractive to international investors.
Markets maintained expectations that the Fed could cut rates by 25 basis points in December, supported by a string of disappointing U.S. labor indicators.
Data from Challenger, Gray & Christmas showed the worst round of U.S. layoffs in nearly two decades during October, intensifying bets that policymakers might act to protect the labor market.
According to the CME FedWatch Tool, traders currently price in a 61.9% probability of a December rate cut.
Broad Gains Across Precious Metals
A softer dollar also lifted other metal prices. Spot platinum climbed 1.4% to $1,571.92 per ounce, while spot silver advanced 1.8% to $49.21 per ounce.
The broader metals market reflected renewed investor optimism that a combination of monetary easing and a resolution to the U.S. shutdown could support global economic stability.
Shutdown End Boosts Market Sentiment
Market confidence improved further as the U.S. Senate voted 60-40 to advance a funding bill expected to end the longest government shutdown in U.S. history. A final vote is anticipated in the coming days.
The move effectively broke a Democratic filibuster that had prolonged the shutdown. Once passed, the bill will reopen key federal services and allow the release of delayed economic data, offering clearer insight into the country’s growth trajectory.
Outlook
With gold prices stabilizing above $4,000 and investors eyeing both Fed policy and Washington’s next steps, the short-term outlook remains cautiously optimistic. A sustained softening in the dollar, coupled with easing political uncertainty, could continue to support precious metals in the weeks ahead.
