Gold prices advanced again on Thursday in Asian hours, extending their recent climb as investors continued to take a defensive stance toward the U.S. economy—even after lawmakers agreed to end the country’s record-breaking government shutdown.
The metal has benefited over the past week from a run of soft private labor indicators in the U.S., which initially boosted expectations of a December rate cut from the Federal Reserve. However, with markets scaling back those expectations in recent days, gold’s momentum has slowed somewhat.
Strong and persistent central bank demand—especially from China—has also been a key tailwind. Figures showed the People’s Bank of China increased its bullion reserves for the twelfth consecutive month in September.
Spot gold rose 0.4% to $4,210.63 per ounce, while December futures held firm at $4,214.60 per ounce as of 00:06 ET (05:06 GMT).
Gold supported by caution around U.S. economic outlook after shutdown ends
Gains this week have come even as Washington moves to reopen after a nearly 43-day shutdown. President Donald Trump signed the funding bill Wednesday evening after the House approved the measure earlier in the day, allowing key government agencies to restart normal operations and release delayed economic reports.
Upcoming data for October and November is widely expected to reflect the toll of the prolonged shutdown. Trump said the disruption cost the U.S. economy $1.5 trillion.
In a note, ANZ analysts wrote: “The prospect of weak economic data following the US government shutdown also helped push gold higher,” noting that heavy central bank accumulation and broader macro uncertainty were also at play.
Other precious metals joined gold in the green. Spot platinum inched up 0.1% to $1,620.15 per ounce, while spot silver jumped 1.7% to $54.1665 per ounce.
Metal markets remained upbeat even as traders dramatically reduced the odds of a December Fed rate cut. According to CME FedWatch, the probability of a 25-bps reduction now sits at 50.4%, down from 62.4% just a day earlier.
Copper rises on optimism from U.S. reopening and expectations of Chinese stimulus
Industrial metals also moved higher, with copper holding onto its strong performance of recent weeks.
London Metal Exchange benchmark copper futures gained 0.2% to $10,933.80 a ton, while COMEX contracts climbed 0.7% to $5.1215 per pound.
Sentiment improved after the end of the U.S. shutdown, raising hopes that domestic business activity will face fewer hurdles and that demand for industrial metals may rebound.
Copper also received support from China, where policymakers have pledged new stimulus efforts, including measures tied to the country’s latest five-year plan aimed at boosting industrial output and strengthening domestic manufacturing.
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