Gold prices surged in early Asian trading on Monday, climbing back above the $4,000-per-ounce mark as a weaker dollar and optimism over the potential resolution of the U.S. government shutdown boosted demand for the safe-haven asset.
The rally was also supported by renewed expectations of a Federal Reserve rate cut in December, though traders remain cautious amid mixed economic signals and the limited availability of fresh U.S. data during the shutdown.
By 23:43 ET (04:43 GMT), spot gold rose 1.4% to $4,053.72 per ounce, while December futures advanced 1.3% to $4,062.45 per ounce.
Precious Metals Lifted by Dollar Weakness and Rate-Cut Hopes
Gold and other metals gained ground as the U.S. dollar extended its recent decline, with traders betting that weaker labor market data could prompt the Fed to ease policy before year-end.
According to Challenger, Gray & Christmas, the U.S. recorded its worst month of layoffs in roughly 20 years during October. The data heightened expectations that the central bank will act preemptively to cushion the economy. The CME FedWatch Tool showed markets assigning a 61.9% probability of a 25-basis-point rate cut in December.
The softer dollar also lifted other precious metals. Spot platinum rose 1.4% to $1,571.92 per ounce, while spot silver gained 1.8% to $49.22 per ounce.
Washington Developments Support Risk Sentiment
Political progress in Washington added further momentum to market optimism. The U.S. Senate voted 60–40 to move forward with a funding bill that could end the country’s longest-ever government shutdown.
The bipartisan vote broke weeks of political stalemate, paving the way for a final vote in the coming days. A resolution is expected to allow the government to restart key operations and resume the release of economic indicators, which have been delayed during the shutdown.
As the dollar weakens and the U.S. moves closer to a fiscal resolution, gold’s appeal as a hedge against policy and market uncertainty remains firmly in focus—keeping the metal on track for one of its strongest sessions in weeks.