Gold Hits Three-Week High as U.S. Reopening Fuels Fed Rate-Cut Bets

Gold extended gains on Thursday to hit its highest level in over three weeks, supported by expectations that the reopening of the U.S. government will resume key economic data releases and strengthen prospects for further Federal Reserve rate cuts.

Spot gold rose 0.4% to $4,214.52 per ounce as of 0521 GMT, its highest since Oct. 21, while U.S. gold futures gained 0.1% to $4,218.20.

“Gold is extending its winning streak on a weaker dollar, Fed rate-cut expectations, and continued central bank buying,” said Jigar Trivedi, senior research analyst at Reliance Securities. “While some consolidation is possible, the broader outlook remains bullish, with potential for highs above $4,300 by year-end.”

U.S. President Donald Trump on Wednesday signed legislation ending the longest government shutdown in U.S. history, which had delayed key reports such as payrolls and inflation data. Economists expect the Labor Department to prioritize November figures ahead of the Fed’s December policy meeting.

A Reuters poll showed 80% of economists expect the Fed to cut rates by 25 basis points next month to support a slowing labor market.

Gold has surged 60% so far this year, hitting a record $4,381.21 on Oct. 20, boosted by geopolitical tensions, trade concerns, and lower real yields.

The yen weakened to a record low against the euro and neared a nine-month low versus the dollar after Japan’s new prime minister urged a cautious approach to rate hikes.

Among other precious metals, silver gained 1.3% to $54.11 per ounce, platinum was steady at $1,614.92, and palladium rose 0.5% to $1,481.08.