Here’s why Citi says crypto prices have been weak recently
Investing.com-- Gold prices edged higher Thursday, continuing the previous session’s upbeat tone, as a slight retreat in the U.S. dollar and uncertainty surrounding the prolonged U.S. government shutdown helped underpin sentiment.
At 08:50 ET (13:50 GMT), Spot gold was up 0.9% at $4,015.20 per ounce and U.S. Gold Futures edged up 0.8% to $4,023.70 per ounce.
The yellow metal jumped 1.3% in the previous session as a global risk-off mood gripped markets amid growing fears of a stock market bubble.
Gold steadies amid shutdown worries
The US Dollar Index slipped lower Thursday as investors returned to risk assets following a brief rout in technology stocks earlier in the week.
Still, the prolonged U.S. government shutdown, now the longest on record, has added to uncertainty in financial markets.
The suspension of several official economic data releases has left investors relying more heavily on private-sector indicators, making it harder to gauge the health of the world’s largest economy.
At the same time, fresh data pointed to a still-resilient U.S. labor market. ADP employment data showed private payrolls rose by 42,000 in October, roughly double market expectations.
The stronger reading reduced bets that the Federal Reserve will cut interest rates in December. The outlook for higher-for-longer rates typically weighs on gold, which offers no yield.
Adding to investor caution, the U.S. Supreme Court began hearings this week on the legality of tariffs imposed under President Donald Trump. The case could have wide-ranging implications for trade policy, and markets are watching for potential long-term effects on inflation and supply chains.
"We remain positive on our gold outlook, despite the recent pullback in prices, with key supports, including central bank and safe haven demand, still in place," ING analysts said in a note.
"Although trade tensions have recently eased, significant geopolitical uncertainty persists, driving demand for safe assets," they added.
Gold ETF demand slows down
Retail investors’ appetite for gold has weakened this quarter as prices eased, according to JPMorgan, which pointed to a slowdown in exchange-traded fund demand following a strong run earlier in the year.
“Since the start of 4Q, there has been a slowing in the retail impulse into gold amid the correction since Oct 20th,” strategists led by Nikolaos Panigirtzoglou wrote, noting a contraction of just under 2% in gold ETF holdings since their October 21 peak. Still, overall holdings remain above end-September levels.
The bank said quarter-to-date flows into gold ETFs remain modestly positive but reflect “a notably weaker demand backdrop in 4Q25.”
That contrasts with the third quarter, when total investment demand in bars, coins, and ETFs rose to nearly 540 tonnes, valued at about $60 billion - up from roughly $50 billion in each of the first two quarters.
Metal markets subdued
Other precious and industrial metals also traded in tight ranges on Thursday.
Silver Futures gained 0.8% to $48.420 per ounce and Platinum Futures were gained 0.1% to $1,564.70/oz.
Benchmark Copper Futures on the London Metal Exchange edged 0.3% higher to $10,749.20 a ton, while U.S. Copper Futures rose 0.5% to $5.0045 a pound.
Ayushman Ojha contributed to this article