The prolonged U.S. government shutdown — the longest in the nation’s history — has officially come to an end after President Donald Trump signed a deal to reopen federal operations. The development has sparked optimism across global markets, boosting expectations that the release of delayed economic data and the continuation of rate cuts will sustain momentum in safe-haven assets such as gold. As a result, gold prices recorded gains for the fifth consecutive trading day.

Gold Hits Three-Week High

Spot gold climbed to $4,236.52 per ounce, marking its highest level since October 21. Analysts noted that the reopening of the U.S. government will accelerate the flow of key economic data, which could influence the Federal Reserve’s approach to monetary policy in the coming months.

According to Jigar Trivedi, Senior Research Analyst at Reliance Securities, “Gold remains supported by a weak dollar, expectations of further rate cuts, and sustained central bank buying. While a short-term consolidation phase may occur, the broader outlook stays positive. As long as real interest rates remain low, prices above $4,300 by year-end appear achievable.”

Market Eyes Potential Fed Rate Cut

A Reuters survey revealed that 80% of economists expect the Federal Reserve to implement another 25-basis-point rate cut in December — a slight uptick from the previous month’s projection.

Gold, which offers no yield, typically performs better in low-interest-rate environments and during periods of economic uncertainty. Since the beginning of the year, the metal has gained more than 60%, hitting an all-time high of $4,381.21 on October 20.

Currency Markets Show Volatility

In Japan, the yen weakened to record lows against the euro and a nine-month low against the dollar after the country’s new prime minister urged the central bank to exercise caution in future rate hikes. This modest decline in the dollar’s strength has provided additional support for gold prices.

Gold Finds Strength in Global Uncertainty

Analysts suggest that the resumption of government operations will bring clarity as long-delayed economic data begins to surface. However, expectations of continued monetary easing by the Fed, combined with ongoing geopolitical tensions, are expected to keep gold well-supported in the near term.

Once again, the precious metal is reaffirming its reputation as a safe haven amid global economic uncertainty — and investors appear keen to maintain their exposure as markets await further policy direction from central banks.

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