Shutdown Over, Gold to Rise?
Gold prices rose in the Asian session, with spot prices at $4,142/oz and December futures at $4,148/oz. Although risk appetite improved due to progress toward ending the longest US shutdown, concerns over its economic impact kept safe-haven demand strong. The recent strengthening of the dollar did little to halt the rally; gold returned to the psychological $4,000/oz level.
On the political and policy front, the US Senate has approved a funding bill paving the way for the end of the 41-day shutdown. The bill now heads to the House of Representatives, with the Republican majority signaling its readiness to approve it. However, the market remains cautious: the release of official data is delayed, and the full economic impact of the shutdown has not yet been fully reflected.
Trade issues also add to the uncertainty. ANZ analysts believe gold's rebound is driven by concerns over US tariffs and the Supreme Court legal proceedings regarding the legal basis for the use of the 1977 IEEPA. President Donald Trump has warned that canceling tariffs could trigger the return of up to $2 trillion in duties, leading the market to assess high policy risk in the coming months.
Other precious metals also strengthened: platinum rose to $1,587/oz and silver to $50.97/oz. For the short-term outlook, gold's direction will be determined by two factors: the final confirmation of the government's reopening (which opens the floodgates of official data) and the Fed's expectations ahead of December—when some traders are starting to reduce their bets on further cuts. (asd)
Source: Newsmaker.id
