Gold Rises Slightly, Dollar Weakens, Shutdown Raise Anxiety
Gold prices edged up on Thursday as the dollar weakened from a four-month peak and market doubts about the US economic outlook amid the government shutdown. Spot gold hovered around $3,986/oz and December futures neared $3,995/oz, though overall gold is still down about 9% from its record high of $4,381 on October 20. The weakening greenback makes gold relatively more attractive to non-dollar buyers.
Analysts believe the slight dollar weakness is helping gold gain traction toward the upside, although the room is limited. The dollar index eased about 0.2% after a five-day rally, while a resilient US labor market—reflected by the ADP report, which posted 42,000 jobs in October—tends to temper expectations of aggressive interest rate cuts.
The policy tone also remains cautious. The Fed cut interest rates last week, but Chairman Jerome Powell has hinted that it could be the last cut this year. Market participants now believe the chances of a December rate cut have decreased compared to last week, especially as the government shutdown has limited official data, forcing central banks and investors to rely more on private indicators.
On the policy risk front, a US Supreme Court hearing cast doubt on the legality of broad Trump-era tariffs has also shaped sentiment across assets. Other precious metals are mixed: silver is slightly higher, palladium is up, while platinum is weaker. In the short term, gold has the potential to remain consolidative—considering the direction of the dollar, policy headlines, and any new clues from US employment and services data. (az)
Source: Newsmaker.id
