Gold continued its upward momentum on Thursday, pushing above the $4,200 mark as investors sought safety amid fresh concerns about the US economy and strong ongoing buying from major central banks.
By 09:25 GMT, spot gold traded around $4,234.63 per ounce, marking another step in a rally that has lasted more than a week.
Weak US Data Fuels Rate-Cut Bets
A string of disappointing private-sector labour reports in the United States has strengthened expectations that the Federal Reserve may cut interest rates in December.
Current market pricing suggests about a 66% chance of a 25-basis-point cut, according to CME projections.
The weaker economic signals—combined with lingering uncertainty despite the resolution of the recent government shutdown—have boosted appetite for safe-haven assets.
Central Banks Continue to Stockpile Gold
A major driver of gold’s strength has been persistent buying from central banks.
The People’s Bank of China added to its reserves again in September, marking 12 straight months of accumulation. This signals an ongoing shift among global reserve managers seeking to diversify holdings away from the US dollar.
US Government Reopens, But Economic Fallout Looms
US President Donald Trump signed legislation late Wednesday to fully reopen the government, ending a record-long shutdown of more than six weeks.
The reopening clears the path for the release of delayed economic reports—data many analysts expect to show notable weakness due to the prolonged disruption.
Trump estimated that the shutdown cost the US economy $1.5 trillion, a figure widely expected to face scrutiny but one that adds to the broader atmosphere of economic fragility.
Gold Holds Strong Despite Improving Market Mood
Even as risk appetite gradually improves, gold remains a preferred defensive asset.
The combination of central bank buying, soft economic indicators, and renewed rate-cut expectations has helped keep prices firmly supported and within striking distance of new highs.
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