Gold Inches Higher as Dollar Retreats; Investors Eye Economic Uncertainty

Gold prices edged up on Thursday as the U.S. dollar eased from a four-month high, with investors remaining cautious amid an extended U.S. government shutdown and mixed economic signals.

Spot gold rose 0.1% to $3,985.59 per ounce by 06:00 GMT, while U.S. gold futures gained 0.1% to $3,995.30. Bullion has slipped about 9% since reaching a record high of $4,381.21 on October 20.

“The dollar has nudged a bit lower, making it easier for gold to gain traction,” said Tim Waterer, Chief Market Analyst at KCM Trade.

The dollar index (DXY) fell 0.2%, easing from Wednesday’s peak, which made gold more affordable for overseas buyers.

Data from ADP showed U.S. private employers added 42,000 jobs in October, topping forecasts of 28,000. While the stronger labor reading may temper expectations for more rate cuts, traders remain focused on the ongoing government shutdown — now the longest in U.S. history — which has disrupted key economic reporting.

Despite resilient macro data, gold’s modest rise reflects investor caution as the Federal Reserve signaled its latest rate cut may be the last of 2025. Markets now price a 63% chance of another cut in December, down from over 90% last week.

Non-yielding gold typically performs better in lower interest-rate environments and during periods of uncertainty.

On the trade front, the U.S. Supreme Court on Wednesday questioned the legality of President Donald Trump’s sweeping tariffs — a move that could carry global economic implications.

Among other precious metals, silver gained 0.5% to $48.29 per ounce, platinum edged up 0.1% to $1,562.55, and palladium rose 0.5% to $1,426.02.