Gold prices strengthened during Thursday’s Asian session, extending their recent upward trend as traders continued to grapple with uncertainty surrounding the U.S. economic outlook—even after lawmakers voted to end the nation’s longest-ever government shutdown.
The metal has been on a steady rise over the past week, bolstered by a series of weak private-sector labor indicators that fueled expectations of a Federal Reserve interest rate cut in December. However, the momentum has eased in the last few sessions as markets sharply dialed back those December rate-cut bets.
Persistent demand from global central banks—most notably the People’s Bank of China—has also underpinned gold. Data showed China’s central bank added to its reserves for the twelfth consecutive month in September.
Spot gold edged up 0.4% to $4,210.63 an ounce, while December gold futures held firm at $4,214.60/oz as of 00:06 ET (05:06 GMT).
Gold supported by caution over U.S. economic health amid reopening
This week’s gains come despite Washington ending its nearly 43-day federal shutdown. President Donald Trump signed the funding bill on Wednesday evening, shortly after approval from the House of Representatives, ensuring agencies can resume releasing key economic data.
Markets expect upcoming reports for October and November to show clear signs of the shutdown’s impact. Trump asserted that the disruption inflicted $1.5 trillion in damage on the U.S. economy.
Analysts at ANZ noted: “The prospect of weak economic data following the US government shutdown also helped push gold higher,” adding that sustained central bank buying and broader uncertainty were also supportive factors.
Other precious metals moved higher as well, extending weekly gains. Spot platinum added 0.1% to $1,620.15/oz, while spot silver jumped 1.7% to $54.1665/oz.
The resilience in bullion came even as traders reduced the probability of a December Fed rate cut. CME FedWatch data showed markets pricing in a 50.4% chance of a 25-basis-point cut—down from 62.4% just one day earlier.
Copper rises on U.S. reopening optimism and China stimulus expectations
Industrial metals also strengthened, with copper continuing its strong run in recent weeks.
London Metal Exchange benchmark copper futures rose 0.2% to $10,933.80 a ton, while COMEX copper futures gained 0.7% to $5.1215 a pound.
The reopening of the U.S. government helped bolster sentiment, with traders expecting fewer disruptions to domestic business activity and potentially firmer demand for copper.
Chinese policy support added to the bullish tone. Recent commitments to additional economic stimulus—including initiatives outlined in China’s new five-year plan—have lifted expectations for increased industrial production and stronger domestic demand.