Gold prices moved higher in Asian trading on Thursday, extending recent gains as traders remained cautious about the U.S. economy, even after lawmakers voted to end the country’s longest government shutdown.
The metal has risen steadily over the past week. A series of soft U.S. labor market readings increased expectations that the Federal Reserve could cut interest rates in December.
However, gold’s momentum slowed in recent sessions as markets reduced the likelihood of a December rate cut.
Strong central bank demand also supported bullion prices. Recent data showed the People’s Bank of China bought gold for the 12th consecutive month in September.
Spot gold rose 0.4% to $4,210.63 an ounce, while December gold futures held near $4,214.60 an ounce by 00:06 ET (05:06 GMT).
Gold rises as U.S. economy shows uncertainty
Gold advanced this week as concerns over the U.S. economy persisted. This came even as lawmakers ended the nearly 43-day government shutdown.
President Donald Trump signed a bill late Wednesday to restore federal funding, shortly after the House of Representatives approved it.
The reopening now allows the release of delayed U.S. economic data. Reports for October and November are expected to show the shutdown’s impact on the economy.
Trump said the shutdown cost the U.S. economy an estimated $1.5 trillion.
Analysts at ANZ said expectations of weaker economic data helped push gold higher. They also noted that central bank buying and broader global uncertainty continued to lift demand for the metal.
Other precious metals followed gold higher. Spot platinum inched up 0.1% to $1,620.15 an ounce, while spot silver jumped 1.7% to $54.1665 an ounce.
Metal markets stayed firm even as traders reduced bets on a December Federal Reserve rate cut. Markets are now pricing in a 50.4% chance of a 25-basis-point cut in December, down from 62.4% a day earlier, according to CME FedWatch.
Copper gains on U.S. reopening and China stimulus hopes
Among industrial metals, copper prices rose on Thursday and remained near multi-week highs.
Benchmark copper futures on the London Metal Exchange added 0.2% to $10,933.80 a ton. COMEX copper futures climbed 0.7% to $5.1215 a pound.
Copper gained support from optimism around the U.S. government’s reopening, which traders hope will reduce business disruptions and strengthen demand for the metal.
Prices were also boosted by expectations of more stimulus from China. The country’s new five-year economic plan includes measures aimed at supporting industrial activity and domestic production.
