Gold surpassed the significant $4,000 per ounce threshold on Thursday, driven by a decline in the dollar and concerns regarding the economic outlook amid an extended U.S. government shutdown. Spot gold experienced an increase of 0.7%, reaching $4,011.79 per ounce as of 0914. U.S. gold futures for December delivery increased by 0.7%, reaching $4,021.20 per ounce. “The Supreme Court skepticism on the tariffs and the slightly weaker dollar are likely supporting gold,” stated analyst Giovanni Staunovo. “In the short term, prices are expected to remain in a consolidative phase; however, we anticipate that additional rate cuts from the Federal Reserve will propel gold to $4,200 per ounce by year-end.”

The dollar declined by 0.2% following its ascent to a four-month peak in the preceding session, thereby reducing the cost of gold for holders of other currencies. On Wednesday, U.S. Supreme Court justices expressed skepticism regarding the legality of President Donald Trump’s extensive tariffs, a case that carries significant implications for the global economy. In October, U.S. private employers recorded an addition of 42,000 jobs, surpassing expert’s projection of a 28,000 increase, as indicated by the ADP report released on Wednesday. The robust labor market may dampen expectations for interest rate reductions. A stalemate in Congress has led to the longest government shutdown in U.S. history, compelling both investors and the Federal Reserve to depend on indicators from the private sector.

The Federal Reserve reduced interest rates last week; however, Chair Jerome Powell indicated that this may be the final decrease for 2025. Market participants currently assess a 63% probability of a Federal Reserve rate cut in December, a decrease from over 90% observed the previous week. Gold, which does not yield any interest, typically performs favorably in environments characterized by low interest rates.

European stocks experienced a decline, influenced by setbacks in France’s Legrand, which fell short of sales growth expectations. This development has intensified existing concerns regarding the high valuations of technology-related firms. In other markets, spot silver increased by 1.4% to $48.74 per ounce, platinum saw a rise of 0.4% to $1,567.01, while palladium experienced a gain of 1.1% to $1,434.22.