Gold prices rose in European trading on Thursday, extending gains for the fifth consecutive session and reaching a three-week high, supported by the current decline in the US dollar, which remains under pressure from expectations of a potential interest-rate cut by the Federal Reserve in December.
President Donald Trump signed a bill to reopen the government, a move that will revive the flow of official economic data and provide clearer evidence regarding the Fed’s policy path.
Price Overview
• Gold prices today: Spot gold rose by 1.1 percent to 4,239.42 dollars, the highest level since 21 October, from an opening price of 4,195.49 dollars, after touching an intraday low of 4,180.12 dollars.
• At Tuesday’s settlement, gold gained 1.65 percent, marking a fourth consecutive daily increase, supported by strong safe-haven demand.
US Dollar
The US Dollar Index fell by 0.4 percent, hitting a two-week low at 99.20 points, reflecting broad weakness in the US currency against a basket of major counterparts.
This decline followed President Donald Trump’s signature on legislation ending the longest government shutdown in US history, bringing an end to political gridlock in Washington.
The development has eased concerns about slowing economic activity and opened the door for the return of regular government data releases, restoring confidence in the markets.
US Interest Rates
• Federal Reserve governor Steven Miran said on Monday that a 50-basis-point rate cut would be appropriate for December, noting that inflation is easing while unemployment is rising.
• According to CME’s FedWatch tool, market pricing currently assigns a 67 percent probability to a 25-basis-point rate cut in December, while the probability of no change remains at 33 percent.
• To reassess these probabilities, investors are closely monitoring remarks from Federal Reserve officials and anticipating the resumption of government economic data as soon as possible.
Outlook for Gold
Analysts at ANZ said in a note that the likelihood of softer economic data following the US government shutdown has helped push gold higher, adding that this will likely support continued central-bank demand.
They added that supportive policy measures, economic uncertainty, and limited investment alternatives will sustain gold demand from retail investors and strategic allocations.
SPDR Fund
Holdings in the SPDR Gold Trust, the world’s largest gold-backed ETF, rose by 0.28 metric tons on Wednesday, marking a second consecutive daily increase and lifting total holdings to 1,046.64 metric tons, the highest level since 24 October.
