Gold pulls back slightly after three-day rally amid economic uncertainty
Gold retreated slightly on Wednesday after three days of gains, as traders awaited a wave of U.S. economic data following the end of the country’s longest-ever government shutdown.
Bullion was trading just above $4,100 an ounce, paring earlier gains, News.Az reports, citing Bloomberg.
Private jobs data suggested weakness in the U.S. labor market, raising expectations of further Federal Reserve rate cuts. However, investors remained cautious as the government shutdown, which has lasted more than 40 days, nears its likely conclusion. The Senate approved a temporary spending package, and the reopening now hinges on action by the Republican-controlled House. The dollar rose slightly after five days of losses.
Gold has pulled back from last month’s record high above $4,380, with profit-taking affecting bullion-backed exchange-traded funds for three consecutive weeks. Despite this, gold remains up over 55% this year, on track for its best annual performance since 1979, supported by robust central-bank demand.
Analysts noted that lingering effects from the extended government shutdown are keeping safe-haven demand alive. The resumption of U.S. economic data releases could further bolster expectations for Fed rate cuts, a positive for gold, which does not yield interest.
Bullion is expected to consolidate before potentially moving higher in 2026. As of 1:43 p.m. Singapore time, gold was down 0.5% at $4,104.45 an ounce, while silver, platinum, and palladium saw slight declines. The Bloomberg Dollar Spot Index was up 0.1%.
Similar news
