Gold prices inched higher on Thursday as investors turned to the metal amid renewed uncertainty surrounding the U.S. government shutdown and doubts over the legality of U.S. trade tariffs. A weaker dollar and falling bond yields also lent support to bullion.
Spot gold climbed 0.1 percent to $3,984.48 per ounce, while U.S. gold futures steadied at $3,992.10. The dollar index slipped 0.4 percent after touching a four-month peak the previous day, making gold cheaper for holders of other currencies. Benchmark 10-year Treasury yields eased 1.6 percent as risk sentiment softened.
Market strategists said the combination of policy uncertainty and tariff concerns was driving a classic safe-haven response. Peter Grant, senior metals strategist at Zaner Metals, said investors are “seeing a revival of the haven bid” as political and trade risks intensify. He added that gold could finish the year strongly, targeting a range between $4,300 and $4,400 per ounce if current conditions persist.
The prolonged government shutdown has weighed on confidence across financial markets, with traders wary of potential delays to official economic data and fiscal spending. At the same time, skepticism from Supreme Court justices about the legality of President Trump’s tariff program added to market nerves.
Gold typically benefits during periods of uncertainty and tends to outperform when interest rates fall. The Federal Reserve cut rates for a second time last week, and futures now imply about a 69 percent chance of another cut in December. A series of Fed officials were expected to speak later in the day, with investors watching closely for policy guidance.
Employment data released Wednesday showed U.S. private employers added 42,000 jobs in October, well above forecasts for 28,000. Analysts said the stronger labor reading might limit the Fed’s flexibility in the short term, but broader economic softness continues to favor safe-haven assets.
Analysts at SP Angel noted that speculative flows could retreat if gold remains near the $4,000 level, but consistent central-bank buying remains an important supportive factor. Several emerging-market banks have been diversifying reserves toward gold to hedge against dollar volatility and political risk.
In other precious-metals trading, silver slipped 0.3 percent to $47.94 per ounce, platinum fell 2.3 percent to $1,526.55, and palladium dropped 2.8 percent to $1,379.44. Traders said the pullback in industrial metals reflected ongoing worries about slower global manufacturing growth.
With the dollar softening and the Fed still inclined toward looser policy, analysts expect gold to remain well-supported through the year-end. Unless the political deadlock in Washington is resolved quickly, investors may continue to seek shelter in safe-haven assets such as bullion.
