Gold prices held steady in Asian trading on Thursday, supported by a weaker U.S. dollar and ongoing concerns about the extended U.S. government shutdown. The metal consolidated gains after rallying more than 1% in the previous session amid a broader flight to safety.
Spot gold climbed 0.2% to $3,988.79 per ounce by 00:37 ET (05:37 GMT), while U.S. gold futures advanced 0.1% to $3,995.70 per ounce.
Gold had surged 1.3% on Wednesday as growing worries over inflated stock valuations and a potential market bubble prompted investors to move into safe-haven assets.
Dollar Dips; Shutdown Extends Market Uncertainty
The U.S. Dollar Index slipped 0.2% in Thursday’s Asian session, reflecting renewed risk appetite after Wall Street’s rebound from an early-week sell-off in tech stocks. The recovery helped ease some valuation concerns but did little to offset uncertainty stemming from Washington’s ongoing budget stalemate.
With the government shutdown stretching into record territory, investors face a lack of official economic data, forcing a greater reliance on private indicators to gauge U.S. economic performance.
Recent figures pointed to ongoing labor market strength. ADP data showed private-sector payrolls grew by 42,000 in October — nearly twice the forecast — suggesting the economy remains resilient despite the fiscal impasse.
The solid data reduced expectations of a December interest rate cut by the Federal Reserve. Since gold yields no income, sustained high rates generally limit its attractiveness.
Meanwhile, investors are watching the U.S. Supreme Court, which began hearings on tariffs introduced under former President Donald Trump. The case could shape future trade and inflation dynamics for years to come.
“We remain positive on our gold outlook, despite the recent pullback in prices, with key supports, including central bank and safe haven demand, still in place,” said analysts at ING.
“Although trade tensions have recently eased, significant geopolitical uncertainty persists, driving demand for safe assets,” they added.
Base Metals Remain Muted
Other precious and industrial metals were little changed. Silver futures gained 0.2% to $48.12 per ounce, while platinum futures were flat at $1,564.60 per ounce.
On the London Metal Exchange, copper rose 0.4% to $10,771.20 per ton, and U.S. copper futures advanced 0.6% to $5.02 per pound.