Gold prices rose on Friday, driven by a wave of safe-haven buying and growing bets that the Federal Reserve will cut rates again in December. Investors, worried about all the uncertainty swirling around the US economy and politics, pushed gold close to the $4,000 level during the Asian session.
The ongoing government shutdown isn’t helping anyone’s nerves—it’s now dragged on for 38 days, and people are starting to get genuinely worried. The Congressional Budget Office says this deadlock could knock as much as 2% off US GDP this quarter. On top of that, legal questions about President Trump’s tariff authority are making folks even more cautious. The result? More investors are piling into gold for safety.
Then there’s the jobs data. It’s not looking great because it says that the private sector actually lost jobs in October, and unemployment inched up. That’s a clear sign that the labor market’s cooling off, and traders are adjusting fast. The CME’s FedWatch Tool shows a 67% chance of a December rate cut now—up from 60% just a week ago. That’s taken some wind out of the US Dollar and given gold another boost.
If one does the analysis of the charts, gold is certainly rising against resistance at $4,030, while support is close to $3,965. $4,100 might be the next stop if the price breaks above $4,050 and stays there. However, keep an eye out for additional selling if it falls below $3,900.
In summary, the bulls maintain control due to a nervous market and softer US data. Moreover, there are heightened expectations for rate cuts. As this week ends, gold appears to be in good shape for the near future.
