Gold Prices Surge to Three-Week High Amid Economic Uncertainty
On November 13, gold prices surged, reaching their highest point in more than three weeks. Spot gold rose by 0.7% to $4,229.19 per ounce, the highest since October 21. Meanwhile, U.S. gold futures for December delivery increased by 0.5% to $4,234.10 per ounce.
This rise followed the signing of legislation by President Donald Trump that ended a 43-day government shutdown, the longest in U.S. history, which had delayed the release of key economic data. The agreement will fund federal operations until January 30, but it is projected to add $1.8 trillion annually to the existing U.S. debt of $38 trillion.
Hugo Pascal, a trader at In Proved, noted that "the rise in precious metal prices aligns with stock market trends, as traders remain cautious. The reopening of the government is unlikely to alter the trajectory significantly, especially with rising debt levels anticipated." He further stated, "Demand for silver and gold is robust, and recent U.S. economic indicators point to sluggish growth, which bodes well for precious metal prices."
This development comes as Federal Reserve Chairman Jerome Powell indicated that additional monetary easing may not occur this year, following a quarter-point interest rate cut last month. Economists are urging the prompt release of employment and inflation reports to inform Federal officials ahead of their upcoming meeting.
According to a Reuters survey, 80% of economists expect the Federal Reserve to implement another 25 basis point cut in the key interest rate next month, in response to a weak labor market.
Gold prices have risen by 61% since the start of the year, reaching an all-time high of $4,381.21 on October 20, supported by geopolitical tensions, trade issues, and expectations for U.S. interest rate reductions.
Other precious metals exhibited mixed results, with spot silver increasing by 0.6% to $53.70 per ounce, approaching its all-time high. In contrast, platinum fell by 0.1% to $1,613.17, and palladium declined by 0.5% to $1,466.05.
