“Gold surpasses 3-week high after record US shutdown endsGold prices rose to a more than three-week high on expectations of an increase in US national debt and the release of economic
data. Spot gold rose 0.9% to $4235.56 per ounce, while gold futures rose 0.6% to $4240.10 per ounce.
”, — write: unn.ua
DetailsSpot gold rose 0.9% to $4235.56 per ounce as of 10:16 GMT (12:16 Kyiv time), reaching its highest level since October 21. US gold futures for December delivery rose 0.6% to $4240.10 per ounce.
“Precious metals are rising along with stocks as traders continue to anticipate a ‘dovish’ sentiment, and the resolution of the US government shutdown will not affect market dynamics, as it is expected to contribute to an increase in debt levels,” said Hugo Pascal, precious metals trader at InProved.
Physical demand for silver and gold remains high, and recent US economic indicators signal weakening growth, which is a favorable factor for metal prices.
US President Donald Trump on Wednesday signed into law a bill ending a 43-day government shutdown, the longest in US history, which delayed important economic data such as employment and inflation figures.
The agreement provides for funding federal operations until January 30, but the national debt is projected to increase by $1.8 trillion annually in addition to the $38 trillion debt.
Federal Reserve (Fed) Chairman Jerome Powell warned against further monetary policy easing this year, partly due to a lack of data, and cut the interest rate by a quarter point last month.
Economists said the US Department of Labor should prioritize November employment and inflation data to provide Fed leadership with up-to-date information for the December policy meeting.
A Reuters poll showed that 80% of economists expect a 25 basis point rate cut by the Fed next month.
Lower interest rates are generally beneficial for gold, which yields no income and is often seen as a safe-haven asset during times of economic uncertainty.
The price of gold, which has risen 61% since the beginning of the year, reached a record high of $4381.21 on October 20, driven by economic and geopolitical concerns, increased inflows into ETFs, and expectations of further rate cuts.
Spot silver prices rose 1.2% to $54.05 per ounce, approaching the record high reached on October 17.
Platinum remained stable at $1615, while palladium rose 0.8% to $1485.26.
RecallAccording to fintech expert and co-founder of Concord Fintech Solutions Olena Sosiedka, the unstable geopolitical situation in the world reinforces the upward trend in gold prices.
“Wars, trade conflicts, unpredictable decisions of world leaders – all this creates an atmosphere of constant instability, in which gold becomes a universal insurance. So the jump in the value of gold is not just a financial event, it is a marker of investors’ confidence in the modern economy. And for the fintech market, this is a clear signal: technology can make finance more convenient, but the basis of trust is always built on simple and understandable values,” Olena Sosiedka summarized.
She noted that the current rise in the value of gold is only the tip of the iceberg, because at a global level it indicates investors’ preparation for a weakening dollar. The depreciation of the American currency makes gold more accessible to buyers in international markets, which, in turn, strengthens demand and stimulates further price growth.
The main drivers of stable demand for gold remain central banks, primarily China and Russia. They are actively increasing their gold reserves, effectively implementing a de-dollarization strategy and demonstrating a desire to reduce dependence on the American currency.