Gold prices retreated slightly in Asian trading on Wednesday, pausing after a two-day recovery as optimism about an imminent end to the record-long U.S. government shutdown boosted risk appetite. At the same time, renewed strength in the dollar and uncertainty surrounding the Federal Reserve’s next policy moves put pressure on the precious metal.
By 23:42 ET (04:42 GMT), spot gold fell 0.5% to $4,108.36 per ounce, while December gold futures edged down 0.1% to $4,114.30 per ounce. In the broader precious metals market, platinum slipped 0.2% to $1,583.90, and silver dipped 0.3% to $51.11, both pulling back after strong gains earlier in the week.
U.S. House Vote to End Shutdown in Focus
Risk sentiment improved this week after the U.S. Senate passed a bill to restore government funding and end the 42-day shutdown — the longest in U.S. history. The legislation now moves to the House of Representatives, which is expected to approve it on Wednesday before sending it to President Donald Trump for his signature.
Optimism over the government’s reopening has lifted equity and risk-driven markets, reducing demand for traditional safe havens such as gold. However, the metal continues to hold comfortably above the $4,000 per ounce level, supported by lingering uncertainty around U.S. monetary policy and trade developments.
Fed Policy and Economic Data Awaited
Investors are closely watching the Federal Reserve’s next move, as policymakers remain divided on whether to lower interest rates again in December. According to the Wall Street Journal’s Nick Timiraos, a lack of recent economic data — delayed by the shutdown — has widened disagreements within the Fed over the need for further easing.
The reopening of the government is expected to unlock a wave of postponed economic reports, giving markets more clarity on growth and inflation trends. Still, near-term expectations for monetary easing have fluctuated, with gold prices softening as traders reassess the likelihood of another rate cut.
The CME FedWatch Tool showed markets now pricing in a 62.4% chance of a 25-basis-point cut at the Fed’s December 10–11 meeting, up from 57.8% the previous day.
Even as optimism about the U.S. reopening boosts broader sentiment, the interplay between economic data, policy uncertainty, and dollar strength is likely to dictate gold’s next move in the days ahead.
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