Gold prices surged during Asian trading sessions on Monday, climbing back above the $4,000 per ounce mark, supported by a weaker U.S. dollar as markets closely followed developments in the ongoing government shutdown, with Congress nearing an agreement to end it.
Expectations of an interest rate cut in December also fueled the bullish momentum for the precious metal, despite continued caution in the markets due to the lack of clear economic signals supporting such a move by the Federal Reserve. Spot gold rose 1.4% to $4,053.72 per ounce, while December gold futures gained 1.3% to reach $4,062.45 per ounce.
Gold and other precious metals moved higher as the dollar extended its decline for the second consecutive week, following a series of weak labor market data. Figures from Challenger showed that October recorded the highest layoff levels in nearly two decades, prompting traders to increase their bets on a 25 basis-point rate cut in December. According to CME FedWatch Tool, the probability of such a move stood at around 62%.
Meanwhile, spot silver gained 1.8% to $49.22 per ounce, and platinum rose 1.4% to $1,571.92 per ounce, supported by continued demand for safe-haven assets.
On the political front, market sentiment improved after the U.S. Senate voted to advance a government funding bill through January 2026, marking a key step toward ending the longest government shutdown in U.S. history.
The bill passed with a 60–40 vote, as several Democratic senators joined Republicans in favor of the measure, signaling meaningful progress in negotiations. The expected passage of the bill in the coming days is likely to resume the release of U.S. economic data, giving markets a clearer outlook on the future direction of monetary policy.
Stay informed about global markets through our previous analyses. and Now, you can also benefit from LDN company services via the LDN Global Markets trading platform.
