Gold traded close to record territory during Asian trade on Thursday, supported by safe-haven demand as concerns over a United States government shutdown weighed on the dollar and clouded the economic outlook.
By 3:55 pm AEST (5:55 am GMT), spot gold was up $3.21, or 0.1%, at US$3,868.96 an ounce.
The metal has now risen in five of the past six sessions, drawing strength from heightened geopolitical risks and uncertainty around U.S. fiscal policy.
Investors grew cautious as the shutdown threatened to delay key employment and inflation reports, raising questions over the Federal Reserve’s policy path beyond its 28-29 October meeting.
However, the greenback recovered later on Wednesday after the U.S. Supreme Court allowed Fed Governor Lisa Cook to remain in her role while it reviews whether President Donald Trump has legal grounds to dismiss her.
The broader geopolitical backdrop also supported gold. The Group of Seven nations pledged to tighten enforcement of sanctions against Russia, warning of penalties for those helping to finance its war effort.
U.S. President Trump separately confirmed that Washington would provide Ukraine with intelligence to assist in long-range missile strikes against Russian energy infrastructure.
On the data front, the latest report from ADP showed U.S. private employers cut 32,000 jobs in September, defying forecasts for a 50,000 increase.
The weak labour print overshadowed a modest uptick in the ISM Manufacturing PMI, which rose to 49.1.
Looking ahead, traders are watching closely to see whether U.S. lawmakers can reach a short-term funding deal to avert or pause the shutdown.
The outcome will determine the release schedule of delayed reports, including weekly jobless claims and August factory orders.
