Gold Gains As US Data Stokes Economic Concerns Amid Shutdown
Spot gold rose 0.5%% to $3,996.75 an ounce at 12:31 p.m. in New York. The Bloomberg Dollar Spot Index inched lower, while platinum and palladium gained.
Gold advanced as investors sought haven after the latest US data pointed to weakening in key areas of the economy.
Sentiment among American consumers soured as the shutdown weighed on the economic outlook, while high prices worsened their views about personal finances. Fears about unemployment jumped, with 71% of respondents in the University of Michigan report expecting it to rise in the year ahead.
While the US payrolls report was not released this Friday due to the shutdown, a survey conducted by 22V Research showed that a labor-market unwind is the biggest risk to trading.
Bond yields and the dollar slipped after the economic readings, helping boost the non-yielding bullion.
Gold is trading little changed from last Friday’s close, following two straight weeks of losses after prices snapped back from a record high above $4,380 an ounce last month. The metal is still up more than 50% this year, on track for its best yearly performance since 1979.
Rate cuts in the US have supported gold prices, as have elevated central bank purchases. The government shutdown — now the longest in US history — has made it more difficult to assess the world’s largest economy, making data provided by private firms an increasingly important guide.
In other precious metals, silver rose for a third session, on track for a small weekly gain. On Thursday, the US added silver to a government list of critical minerals included in the Trump administration’s Section 232 probe, which could lead to tariffs and trade restrictions. Any duties on silver could ripple through on metals markets because the US relies heavily on imports to meet demand.
Spot gold rose 0.5%% to $3,996.75 an ounce at 12:31 p.m. in New York. The Bloomberg Dollar Spot Index inched lower, while platinum and palladium gained.
