Gold prices edged lower in Asian trading on Wednesday, easing after a two-day climb as renewed optimism over the possible reopening of the U.S. government encouraged risk-taking and strengthened the dollar. Investors also turned cautious amid growing uncertainty about the Federal Reserve’s next rate decision.
By 23:42 ET (04:42 GMT), spot gold was down 0.5% to $4,108.36 per ounce, while December futures slipped 0.1% to $4,114.30 per ounce. Among other precious metals, platinum declined 0.2% to $1,583.90, and silver dipped 0.3% to $51.11, both giving back part of their earlier weekly gains.
Markets Watch U.S. Lawmakers Move to End Shutdown
Investor sentiment improved following the U.S. Senate’s approval of a bill aimed at ending the 42-day government shutdown — the longest in American history. The measure now awaits a vote in the House of Representatives, which is expected to pass it on Wednesday before sending it to President Donald Trump for final approval.
The prospect of a government reopening has boosted equities and risk assets, weighing on safe-haven demand for gold. Still, the metal continues to hold comfortably above the $4,000 per ounce threshold, supported by ongoing uncertainty surrounding monetary policy and trade tensions.
Focus Turns to Fed and Delayed Economic Data
Market attention has also shifted to the Federal Reserve, where policymakers remain divided on whether to deliver another rate cut in December. Reporting by the Wall Street Journal’s Nick Timiraos suggested that delays in key U.S. economic data, caused by the shutdown, have deepened disagreements among Fed officials about the strength of the economy and the need for additional stimulus.
Once the government reopens, the release of pending economic indicators — including jobs, inflation, and consumer data — could provide fresh clarity for both investors and policymakers.
For now, expectations of a December rate cut remain fluid. The CME FedWatch Tool indicates a 62.4% probability of a 25-basis-point reduction at the Fed’s December 10–11 meeting, compared with 57.8% a day earlier.
Although gold has eased from recent highs, its resilience above key technical levels reflects ongoing investor caution amid mixed signals from Washington and the Federal Reserve. The next batch of U.S. data could determine whether the metal resumes its upward trajectory or faces further consolidation.