Global Gold Prices Rise Again Amid Rate-Cut Expectations and U.S. Government Shutdown Concerns

November 7: Gold prices climbed on Friday (Nov 7) as investors anticipated further U.S. interest rate cuts and weighed the impact of the prolonged U.S. government shutdown on global markets.

As of 9:25 a.m. Bangladesh time, spot gold rose 0.8% to $4,010.72 per ounce, while U.S. gold futures for December delivery increased to $4,019.50 per ounce.

Other precious metals also gained, with spot silver up 1.2% to $48.58 per ounce, platinum rising 0.4% to $1,547.45, and palladium climbing 0.7% to $1,384.18. However, all three metals remain on a weekly downward trend.

A report released Thursday showed significant job losses across both government and retail sectors in the United States during October, as companies tightened spending and adopted more artificial intelligence technologies.

A weaker job market typically encourages the Federal Reserve to consider lowering interest rates to stimulate economic growth.

Market observers now estimate a 67% chance of another rate cut by the Federal Reserve in December, up from around 60% earlier. The Fed reduced rates last week, and Chair Jerome Powell indicated it could be the final cut for this year.

Soni Kumari, commodities analyst at ANZ Bank, said market sentiment is now focused on “macroeconomic indicators and how quickly the U.S. government can recover from its shutdown.”

“This uncertainty is boosting demand for gold as a safe-haven asset,” she added.

The ongoing Congressional deadlock, which has led to one of the longest government shutdowns in U.S. history, has forced investors and even the Fed to rely more on private-sector data for policy decisions.

Analysts say that unless the shutdown ends soon, continued instability in the U.S. economy could further lift gold prices as investors seek protection from volatility in traditional markets.