Gold pushed toward fresh ten-day highs above US$4,050 during Monday's Asian session as investors grew optimistic that the prolonged United States government shutdown could soon end, supporting broader market sentiment while underpinning safe-haven demand.
By 4:15 pm AEDT (5:15 am GMT), spot gold traded 1.3% higher at US$4,051.25 per ounce, extending Friday’s rebound as traders built positions ahead of further developments in Washington.
Market sentiment brightened after the U.S. Senate voted 60–40 in favour of advancing a government funding bill, a key procedural step toward reopening the federal government.
The move lifted risk appetite and curbed the dollar’s rally, helping gold maintain traction near the $4,050 level.
Further buoying risk sentiment, China announced on Sunday a temporary suspension of its export ban on dual-use materials such as gallium, germanium, and antimony to the United States, easing trade tensions.
However, investors remained cautious as the funding package still requires approval from the House of Representatives before being signed into law by President Donald Trump.
The delay risk continues to lend underlying support to gold as uncertainty lingers.
Economic data also underscored growing concerns about the health of the U.S. economy following the record-length shutdown. The University of Michigan’s preliminary consumer sentiment index fell sharply to 50.3 in early November - its weakest reading in nearly three and a half years.
Meanwhile, a separate report from Challenger, Gray & Christmas showed corporate layoffs surged 183.1% in October, marking the steepest monthly rise in over two decades.
In light of the recent deterioration in consumer and labour market indicators, the CME Group FedWatch Tool is now indicating a 62.9% probability of a Federal Reserve interest rate cut in December.
