Gold rose above the key $4,000 per ounce level on Thursday as a weaker dollar and a prolonged US government shutdown stoked worries about the economic outlook.
Spot gold gained 0.7% to $4,011.79 per ounce by 0914 GMT, while US gold futures for December delivery rose 0.7% to $4,021.20.
“The Supreme Court skepticism on the tariffs and the slightly weaker dollar are likely supporting gold,” said UBS analyst Giovanni Staunovo. “While near-term prices are likely to continue consolidating, we expect further Federal Reserve rate cuts to lift gold to $4,200/oz by the end of the year.”
The dollar index slipped 0.2% after hitting a four-month high in the previous session, making gold more attractive to holders of other currencies.
US Supreme Court justices on Wednesday raised doubts about the legality of former President Donald Trump’s sweeping tariffs in a case with implications for global trade.
Meanwhile, the latest ADP report showed US private employers added 42,000 jobs in October, beating forecasts for a 28,000 gain — a sign of labor market resilience that could temper expectations for more rate cuts.
A congressional deadlock has resulted in the longest-ever US government shutdown, forcing investors and policymakers to rely more heavily on private-sector data. The Federal Reserve cut interest rates last week, but Chair Jerome Powell suggested it might be the final reduction for 2025.
Markets now price a 63% chance of another Fed rate cut in December, down from over 90% a week earlier. Gold, which yields no interest, tends to benefit from lower rate environments.
Elsewhere, spot silver rose 1.4% to $48.74 per ounce, platinum gained 0.4% to $1,567.01, and palladium added 1.1% to $1,434.22.— Reuters
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