Why are gold prices up today? Key points for investors

Gold price on Thursday crossed $4,000-mark. Spot gold was up 0.6 per cent at $4,007.38 per ounce. U.S. gold futures for December delivery gained 0.6 per cent to $4,017.20 per ounce. This comes after the recent slide in gold rate. The U.S. dollar fell 0.3 per cent after hitting a four-month high in the previous session, making gold less expensive for other currency holders. Spot silver rose 1.3 per cent to $48.66 per ounce, platinum was steady at $1,562.19, and palladium fell 0.4 per cent to $1,413.86.

Gold Rate Rise Reason

Gold's rise above the key $4,000 per ounce level was supported by a retreat in the dollar, while a prolonged U.S. government shutdown raised worries over the economic outlook. "The Supreme Court skepticism on the tariffs and the slightly weaker dollar are likely supporting gold," said UBS analyst Giovanni Staunovo.


"While near-term prices are likely to continue consolidating, we expect further Federal Reserve rate cuts to lift gold to $4,200/oz by the end of the year," UBS analyst Giovanni Staunovo stated.

A congressional impasse has resulted in what is now the longest-ever U.S. government shutdown, forcing investors and the Federal Reserve to rely on private sector indicators.

The U.S. Fed cut interest rates last week but Chair Jerome Powell suggested it might be the last reduction for 2025. Market participants now see a 63 per cent chance of a Fed rate cut in December, down from more than 90 per cent last week.

Non-yielding gold tends to do well in low-interest-rate environments.

European stocks slipped, pressured by losses in France's Legrand as it missed sales growth expectations, adding to recent worries around elevated valuations in tech-related companies.

FAQs

Q1. How are gold performing?
A1. Spot gold was up 0.6 per cent at $4,007.38 per ounce. U.S. gold futures for December delivery gained 0.6 per cent to $4,017.20 per ounce.

Q2. How are silver, platinum, palladium performing?
A2. Spot silver rose 1.3 per cent to $48.66 per ounce, platinum was steady at $1,562.19, and palladium fell 0.4 per cent to $1,413.86.