Gold prices are almost flat after rising nearly 2% in the fourth session, as traders consider the uncertain outlook for the US economy amid a lack of reliable data during the six weeks of government shutdowns.
The precious metal traded around $4,200 an ounce in the session on Thursday morning, consolidating its upward momentum for four consecutive sessions - the longest increase streak in a month. Although the US Congress has passed a temporary funding bill to end the longest government shutdown in history, the White House warned that October jobs and inflation reports are unlikely to be released.
The data shortage during the government's shutdown has forced investors to trade in a " left-of-way" situation, forcing them to rely on private data to assess the health of the world's largest economy. Gold prices have risen nearly 5% this week, partly on expectations that the Fed will continue to cut interest rates after Washington resumes operations - a factor that is beneficial for metals that do not yield like gold.
However, policymakers are still divided on whether to continue to reduce borrowing costs. Florida Fed President Raphael Bostic and Florida Florida Susan Collins both said they should keep interest rates unchanged to curb inflation.
The lack of official economic data and concerns about the level of policy tightening have made expectations for the Feds December meeting confused, said TD Securitiess analysis team, including Oscar Munoz, in a report. " behind-the-scenes data solve the debate, while there is a lack of data, it will make policy views fixed."
Gold prices have risen nearly 60% since the start of the year, continuing to move towards their strongest annual increase since 1979. Central banks are stepping up buying to find a place to store value and diversify assets, while investors are also increasing their holdings of gold to protect against growing fiscal concerns in many major economies.
Although prices have fallen from a record high of over $4,380 an ounce last month due to concerns about too much too much many investors still predict gold could move to $5,000 an ounce or higher next year. China continues to lead the force of central banks buying gold, in line with the goal of reducing dependence on the financial market associated with the US.
As of 11:21 in Singapore, gold prices increased by 0.2%, to 4,205.5 USD/ounce. Bloomberg Dollar spot is almost flat. Silver prices increased slightly, approaching record levels, while platinum decreased slightly and paladi increased in price.
