Concerns about US economic growth and expectations of a Federal Reserve rate cut sent gold prices to a near two-week high.
2025-11-10 14:16:40
Spot gold climbed above $4,050 in Asian trading on Monday (November 10), reaching a high of $4,071.14 per ounce by 14:05, a near two-week high, representing a gain of approximately 1.75%. Concerns about uncertainty surrounding the US economic outlook provided upward momentum for gold prices. Traders increased their bets on a Federal Reserve rate cut following weak US private employment data and a pessimistic University of Michigan (UoM) consumer sentiment survey. Lower interest rates could reduce the opportunity cost of holding gold, thus supporting the non-yielding precious metal.
On the other hand, signs that the US government shutdown may be ending could weaken safe-haven assets such as gold. US senators will vote on Monday on an agreement that could end the longest government shutdown in history. Furthermore, easing trade tensions between the world's two largest economies—the US and China—may also drag down gold prices in the short term.
Traders will be closely watching the U.S. October Consumer Price Index (CPI) inflation data to be released later on Thursday. The market expects the overall CPI to rise 0.2% month-over-month in October, while the core CPI is projected to rise 0.3% year-over-year. Friday's U.S. retail sales data (commonly known as "the terror data") will be the focus.
The Senate is in recess until 11:00 a.m. local time on Monday (11:00 p.m. Beijing time) to continue deliberating on legislation to reopen the government following tonight's breakthrough. Meanwhile, House Democratic leadership has notified members that a vote will be held later this week. Members will receive 36 hours' notice of the vote when dealing with travel delays and cancellations during the shutdown.
A group of centrist Senate Democrats have reportedly agreed to support an agreement to reopen the government and provide funding for some departments and agencies for the next year, as the U.S. government shutdown nears its end. The measure will provide funding to some departments until January 30.
According to a report by Politico, the Republican leader of the U.S. House of Representatives has notified Republican members to return to Congress within 36 hours and indicated that a vote on reopening the government is expected this week, provided that the Senate ultimately passes the relevant bill.
Data shows that more than 10,000 flights were delayed in the United States on Sunday, marking the worst single-day record for the aviation industry since the government shutdown.
White House economic advisor Hassett said in an interview aired Sunday that the U.S. economy could turn negative in the fourth quarter if the federal government shutdown continues. Speaking on CBS's "Face the Nation," Hassett pointed out that a shortage of air traffic controllers is causing significant travel delays as the Thanksgiving holiday approaches. "Thanksgiving is one of the busiest times of the year for the economy... If people can't travel during that time, then we could really face a negative fourth quarter."
The University of Michigan (UoM) reported last Friday that its consumer confidence index fell to 50.3 in November, the lowest since June 2022, compared with a final reading of 53.6 in October, which was lower than the expected 53.2.
Data released last week also showed that the U.S. economy lost jobs in October, dragged down by the government and retail sectors, while cost-cutting and the adoption of artificial intelligence led to a surge in announced layoffs. Private data showed that the U.S. economy lost jobs in October, dragged down by the government and retail sectors, while cost-cutting and the adoption of artificial intelligence led to a surge in announced layoffs. Data from labor market analytics firm Revelio Labs showed that 9,100 jobs were lost in October, including 22,200 in the government sector.
A recent report from the Federal Reserve Bank of New York shows that Americans expect inflationary pressures to ease in the short term in October, but remain concerned about the job market outlook and their personal finances.
According to the CME FedWatch tool, the market currently sees a near 63% chance of a 25 basis point (bps) rate cut in December.
Gold prices were positive for the day. According to the daily chart, the bullish outlook for the precious metal remains intact, as prices hold above the key 100-day exponential moving average (EMA). The path of least resistance is above the 14-day Relative Strength Index (RSI) near the midline at 55.0, indicating bullish momentum for gold in the short term.
If gold continues to hold above the October 22 high of $4,161, it could target the psychological level of $4,200. Further upside, the next resistance level is the upper Bollinger Band at $4,325.
If a bearish candlestick pattern appears and trading continues below $4,000, it could indicate that sellers have regained control. At that point, gold prices could fall back to the lower Bollinger Band at $3,835, followed by the 100-day EMA at $3,705.
(Spot gold daily chart, source: FX678)
At 14:13 Beijing time, spot gold was trading at $4067.61 per ounce.
On the other hand, signs that the US government shutdown may be ending could weaken safe-haven assets such as gold. US senators will vote on Monday on an agreement that could end the longest government shutdown in history. Furthermore, easing trade tensions between the world's two largest economies—the US and China—may also drag down gold prices in the short term.
Traders will be closely watching the U.S. October Consumer Price Index (CPI) inflation data to be released later on Thursday. The market expects the overall CPI to rise 0.2% month-over-month in October, while the core CPI is projected to rise 0.3% year-over-year. Friday's U.S. retail sales data (commonly known as "the terror data") will be the focus.
Market News Summary: Gold builds momentum for gains amid heightened uncertainty.
The Senate is in recess until 11:00 a.m. local time on Monday (11:00 p.m. Beijing time) to continue deliberating on legislation to reopen the government following tonight's breakthrough. Meanwhile, House Democratic leadership has notified members that a vote will be held later this week. Members will receive 36 hours' notice of the vote when dealing with travel delays and cancellations during the shutdown.
A group of centrist Senate Democrats have reportedly agreed to support an agreement to reopen the government and provide funding for some departments and agencies for the next year, as the U.S. government shutdown nears its end. The measure will provide funding to some departments until January 30.
According to a report by Politico, the Republican leader of the U.S. House of Representatives has notified Republican members to return to Congress within 36 hours and indicated that a vote on reopening the government is expected this week, provided that the Senate ultimately passes the relevant bill.
Data shows that more than 10,000 flights were delayed in the United States on Sunday, marking the worst single-day record for the aviation industry since the government shutdown.
White House economic advisor Hassett said in an interview aired Sunday that the U.S. economy could turn negative in the fourth quarter if the federal government shutdown continues. Speaking on CBS's "Face the Nation," Hassett pointed out that a shortage of air traffic controllers is causing significant travel delays as the Thanksgiving holiday approaches. "Thanksgiving is one of the busiest times of the year for the economy... If people can't travel during that time, then we could really face a negative fourth quarter."
The University of Michigan (UoM) reported last Friday that its consumer confidence index fell to 50.3 in November, the lowest since June 2022, compared with a final reading of 53.6 in October, which was lower than the expected 53.2.
Data released last week also showed that the U.S. economy lost jobs in October, dragged down by the government and retail sectors, while cost-cutting and the adoption of artificial intelligence led to a surge in announced layoffs. Private data showed that the U.S. economy lost jobs in October, dragged down by the government and retail sectors, while cost-cutting and the adoption of artificial intelligence led to a surge in announced layoffs. Data from labor market analytics firm Revelio Labs showed that 9,100 jobs were lost in October, including 22,200 in the government sector.
A recent report from the Federal Reserve Bank of New York shows that Americans expect inflationary pressures to ease in the short term in October, but remain concerned about the job market outlook and their personal finances.
According to the CME FedWatch tool, the market currently sees a near 63% chance of a 25 basis point (bps) rate cut in December.
The bullish tone for gold remains intact above the key 100-day moving average.
Gold prices were positive for the day. According to the daily chart, the bullish outlook for the precious metal remains intact, as prices hold above the key 100-day exponential moving average (EMA). The path of least resistance is above the 14-day Relative Strength Index (RSI) near the midline at 55.0, indicating bullish momentum for gold in the short term.
If gold continues to hold above the October 22 high of $4,161, it could target the psychological level of $4,200. Further upside, the next resistance level is the upper Bollinger Band at $4,325.
If a bearish candlestick pattern appears and trading continues below $4,000, it could indicate that sellers have regained control. At that point, gold prices could fall back to the lower Bollinger Band at $3,835, followed by the 100-day EMA at $3,705.
(Spot gold daily chart, source: FX678)
At 14:13 Beijing time, spot gold was trading at $4067.61 per ounce.
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