Gold prices stabilizes after two-day rebound; U.S. govt reopening, Fed in focus
Gold prices stabilized Wednesday after a two-day rebound even as risk appetite was aided by optimism over the likely end to the longest ever U.S. government shutdown.
At 09:00 ET (14:00 GMT), Spot gold rose 0.1% to $4,128.08 an ounce and gold futures for December gained 0.4% to $4,133.05/oz.
December rate cut in doubt
Uncertainty over U.S. interest rates has helped spur some demand for gold this week, as did the Supreme Court criticizing Trump’s trade tariffs.
The Wall Street Journal’s Nick Timiraos said there was a growing rift among Federal Reserve policymakers over whether to cut interest rates in December, with delayed economic readings for September and October adding to this friction.
The end of the government shutdown will open the door for more official economic data releases, which could in turn help quell some uncertainty over the economy.
Markets are pricing in a 62.4% chance for a 25 basis point cut in the Fed’s December 10-11 meeting, up from a 57.8% chance seen yesterday, CME Fedwatch showed.
U.S. House to vote on ending government shutdown
Risk appetite improved this week after the U.S. Senate approved a measure aimed at unlocking government spending and ending the longest ever government shutdown.
The bill will now head to the House of Representatives for further approval, with the Republican-controlled body having signaled it will approve the bill. After this, it will head to Trump to be signed into law.
Optimism over an end to the shutdown– which entered its 42nd day on Tuesday– spurred some gains in risk-driven markets, which in turn sapped safe haven demand for gold.
But the yellow metal still remained pinned above the symbolic $4,000/oz level, aided by uncertainty over U.S. interest rates and trade tariffs.
Elsewhere, spot platinum fell 0.3% to $1,593.80/oz, while spot silver gained 1.5% to $51.52/oz.
Source : Investing.com
