Gold held above USD 4,100 per ounce on Wednesday as investors awaited developments on the US government shutdown, a key factor likely to set the tone for global markets.
Lawmakers are expected to vote later today on a bipartisan deal to restore federal funding and end the record-long closure, which delayed the release of crucial economic data.
Any breakthrough could lift market sentiment and shift flows toward riskier assets, while renewed gridlock may reinforce safe-haven demand for bullion.
The government reopening could permit the release of a string of economic data, which could affect gold’s direction. The metal could benefit if the data reinforces concerns about the job market and expectations of interest rate cuts.
Recent private-sector data signalled weakening labour market conditions, strengthening expectations of a more dovish Federal Reserve stance. ADP figures showed US private employers cut an average of 11,250 jobs per week in late October. Complementary ISM data also confirmed persistent contraction in employment across both manufacturing and services sectors.
In parallel, geopolitical tensions in Eastern Europe and the Middle East continue to support gold’s appeal.
Meanwhile, gold-backed ETFs recorded a modest inflow of 2.4 tons last week, following two weeks of heavy outflows. Asia led the recovery with 1.9 tons of net additions, while North America saw a slight withdrawal of 0.8 tons, signalling tentative investor re-engagement after recent profit-taking.
