Gold prices edge higher; economic uncertainty persists as U.S. govt reopens

Investing.com -- Gold prices rose Thursday, extending recent gains as traders remained uncertain over the U.S. economy even as lawmakers voted to end the country’s longest ever government shutdown.

At 07:55 ET (12:55 GMT), Spot gold rose 1.1% to $4,242.09 an ounce and gold futures for December gained 0.8% to $4,247.80/oz.

Gold buoyed by economic uncertainty  

Gold rose this week amid growing uncertainty over the U.S. economy, even as lawmakers voted to end a nearly 43-day government shutdown. 

U.S. President Donald Trump on Wednesday evening signed a bill unlocking more government funding, just shortly after the House of Representatives voted to approve the measure. 

The reopening is now expected to open the door to more official economic data from the U.S. government, offering greater insight into the world’s largest economy. 

Trump claimed that the shutdown cost the U.S. economy $1.5 trillion. 

“The prospect of weak economic data following the U.S. government shutdown also helped push gold higher,” ANZ analysts wrote in a note, adding that central bank buying and broader economic uncertainty was also boosting gold.

Other precious metals also advanced on Thursday and were sitting on gains this week. Spot platinum rose 1.2% to $1,650.20/oz and spot silver surged 1% to $53.960/oz. 

Metal markets remained upbeat even as traders sharply pared bets on a December rate cut by the Fed. Markets are pricing in a 50.4% chance for a 25 basis point cut in December, much lower than the 62.4% chance seen a day ago, CME Fedwatch showed. 

Sustained central bank buying of gold, especially in China, also aided bullion prices. Recent data showed the People’s Bank purchased gold for the 12th straight month in September. 

Copper up on reopening cheer

Among industrial metals, copper prices rose on Thursday and were sitting on strong gains in recent weeks. 

Benchmark copper futures on the London Metal Exchange rose 0.6% to $10,975.00 a ton and COMEX copper futures rose 0.6% to $5.1340 a pound. 

Copper prices were encouraged by the U.S. government reopening, on hopes that local business will face fewer disruptions and that demand for the red metal will pick up again. 

Copper was also encouraged by pledges of more stimulus from China in recent weeks, with the country’s new five-year economic plan aimed at shoring up industrial activity and domestic production.

Ambar Warrick contributed to this article