Gold prices fell in European trading on Wednesday, retreating from a three-week high and heading for their first loss in four sessions amid profit-taking and a stronger US dollar in foreign exchange markets.
After passing through the Senate, the bill to reopen the US government — following the longest shutdown in the country’s history — is expected to go to a vote in the Republican-controlled House of Representatives later today.
Price Overview
Gold prices fell 0.7% to $4,098.93 per ounce, down from an opening level of $4,127.06, after reaching a session high of $4,145.62.
On Tuesday, gold gained 0.3%, marking its third consecutive daily advance and hitting a three-week high at $4,149.02 per ounce, supported by safe-haven demand.
US Dollar
The US Dollar Index rose about 0.2% on Wednesday, recovering from a two-week low and reflecting renewed strength in the greenback against both major and minor currencies.
The rebound came as markets anticipated an official end to the US government shutdown later today, after the Senate approved a bill on Monday night to restore federal funding and reopen government operations.
The agreement now moves to the Republican-controlled House of Representatives, where Speaker Mike Johnson said he plans to bring it to a vote on Wednesday and send it to President Donald Trump for signature.
US Interest Rates
Federal Reserve Governor Steven Miran said on Monday that a 50-basis-point rate cut would be appropriate in December, noting that inflation is falling while unemployment is rising.
According to the CME FedWatch tool, market pricing currently implies a 64% chance of a 25-basis-point rate cut in December, versus a 36% probability of no change.
Investors are closely watching comments from Federal Reserve officials and expect government economic data releases to resume starting Thursday.
Gold Outlook
UBS analyst Giovanni Staunovo said, “Everyone is waiting for more clarity on the government shutdown and when official US economic data will resume. We may see some consolidation before prices move higher again — the broader uptrend in gold remains intact.”
ANZ Bank noted in a research report that gold prices broke through resistance at $4,050 per ounce after a period of consolidation, confirming the prevailing bullish momentum.
The bank added that the next resistance zone lies between $4,160 and $4,170, and a breakout above that range could push prices toward the record level of $4,380 per ounce.
Meanwhile, JPMorgan said in a note on Wednesday that central banks and consumers are expected to act as “reliable buyers” during price dips, forecasting gold to exceed $5,000 per ounce by the fourth quarter of 2026.
SPDR Gold Trust
Holdings at the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose by 4.3 metric tons on Tuesday to 1,046.36 metric tons — the highest level since October 24.
