Gold traded near three-week highs on Thursday, holding firm around the US$4,200 level as investors awaited the reopening of the U.S. government and clarity on the timing of key economic data releases.
By 4 pm AEDT (5 am GMT), spot gold rose 0.4% to $4,211.86 per ounce, extending its weekly gain to 5.3% so far.
The metal has drawn support from ongoing uncertainty surrounding the release of U.S. economic figures following the record government shutdown.
Although the House of Representatives voted 222-209 to pass a bill to reopen the government, questions remain about how soon critical data will be published.
White House Press Secretary Karoline Leavitt said on Wednesday that the federal jobs and inflation reports for October may never get calculated and released due to the prolonged shutdown.
The lack of clarity has prompted cautious trading across markets, lending support to the safe-haven U.S. dollar and limiting gold’s upside momentum.
Markets are pricing a 55.6% chance of a 25 basis point interest rate cut by the Federal Reserve next month, according to the CME Group FedWatch Tool - a view that has helped underpin gold’s recent rally despite temporary strength in the dollar.
