Gold traded steady, consolidating three days of growth, as traders weighed the imminent restart of the US government and the prospect of further interest-rate cuts in a subdued labor market.
Bullion rose above $4,145 an ounce in early trading on Wednesday, before paring gains. Data from ADP Research showed US companies shed 11 250 jobs per week on average in the four weeks ended 25 October, reinforcing concerns about weakness in the American labor market. This could enhance the prospect of further rate cuts — a positive for gold, which doesn’t pay interest.
But investors are also awaiting a flurry of official data when the US government ends the longest shutdown in its history. The restart – expected within days after the Senate passed a temporary funding measure – would remove the need for traders to rely on private data, adding more certainty to their forecasts and lifting the fog over future rate decisions.
Bullion has pulled back from last month’s record high above $4 380, with investors taking profits from a rally some feared had gone too far, too fast. In a sharp reversal, gold-backed exchange-traded funds have booked three straight weeks of net outflows, according to data compiled by Bloomberg.
But the metal – up more than 55% this year – remains on track for its best annual performance since 1979, supported by a number of factors including elevated central-bank buying.
Charu Chanana, chief investment strategist at Saxo Markets in Singapore, said gold would likely consolidate further before its next push higher in 2026.
“We could see more broadening of the US equity market as flows are diverted from overbought assets, such as gold and AI names, to those that have been out of favor,” she said.
Gold edged up 0.2% to $4,134.01 an ounce as of 9:48 a.m. Singapore time. The Bloomberg Dollar Spot Index was up 0.1%. Silver rose 0.2%, while platinum and palladium were also slightly up.
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