Gold Prices Reached a Three-Week High: U.S. Government Reopened

Gold Prices are Rising

Gold reached its highest level in three weeks on Thursday, continuing to rise. The increase was influenced by expectations regarding the reopening of the U.S. government and the commencement of economic data flows.

Spot Gold and Futures Contracts

As of 07:07 TSİ, spot gold increased by 0.4%, rising to 4,215.87 dollars per ounce, reaching its highest value since October 21. December gold futures contracts in the U.S. also saw a 0.2% increase, reaching 4,219.90 dollars.

Views of ANZ Analysts

ANZ analysts stated, “The possibility of weak economic data following the U.S. government shutdown has pushed gold prices higher. This trend will be supported by ongoing demand from central banks,” they commented. Additionally, they expressed that “Appropriate policy measures, economic uncertainty, and limited investment alternatives will increase both individual and strategic gold demand.”

Government Shutdown and Economic Data

On Wednesday, U.S. President Donald Trump signed the law that ended the longest government shutdown in U.S. history. The shutdown, which began on October 1, had prevented the release of several important economic data including employment and inflation reports.

Expectations of Economists

Economists emphasized that the statistical agency under the U.S. Department of Labor should prioritize the preparation of the November employment and inflation reports so that Fed officials can access current data before the December meeting. 80% of economists expect the Fed to further reduce its policy rate by 25 basis points next month to support the weakening labor market, and this figure has seen a slight increase compared to last month’s survey.