Gold and silver prices surge as the US government may be about to restart [its operations].
2025-11-10 23:25:29
Gold and silver prices surged in early U.S. trading on Monday (November 10). Gold hit a two-week high, while silver reached a three-week peak. Market expectations of an imminent reopening of the U.S. government boosted the precious metals market, and the release of recovering U.S. economic data increased the likelihood of a Federal Reserve rate cut in December. December gold futures (which are typically priced a dozen dollars higher than spot gold) rose $85.30 to $4095.10 per ounce; December silver futures rose $1.87 to $49.830 per ounce.
The US government has restarted related progress.
On Sunday, the U.S. Senate passed a procedural bill by a vote of 60 to 40, pushing forward a bill aimed at ending the federal government shutdown. A group of moderate Democrats broke with their party leaders to express support for the agreement. However, due to opposition from Democratic leaders, the bill's passage in the House of Representatives is not guaranteed. The agreement failed to meet the goals of Democratic leaders in both the House and Senate, who had previously demanded an extension of the expiring Obamacare subsidies. Democrats received a promise from Republicans to vote in mid-December on a bill to extend the Affordable Care Act tax credit. The Senate, which adjourned on Sunday, reconvened today, but has not yet scheduled a final vote.
It remains unclear when the shutdown will end. A swift end requires unanimous Senate approval, and any single senator could trigger procedural delays of several days. House Speaker Mike Johnson plans to give senators 36 hours' notice to return to Washington. President Trump stated, "It looks like we're getting closer to ending the shutdown."
Related market response
News that the US Senate is on track to pass a bill to reopen the government has boosted global stock markets, with New York markets expected to open significantly higher today. US Treasury yields rose slightly, and the dollar index also edged higher. Grain futures prices rose modestly overnight as uncertainty surrounding the interruption of USDA data releases is expected to dissipate once the data resumes. Crude oil prices reacted muted to the news.
The impact of government shutdown on Federal Reserve policy
The US government shutdown has delayed the release of key economic data such as the October Consumer Price Index (CPI) and employment report, which will prolong the discussion about whether the Federal Reserve needs to cut interest rates again at its December meeting.
The lack of official reports will make it difficult for policymakers to assess the trajectory of inflation and the labor market, and alternative indicators of government inflation data are not only difficult to obtain but also have limited coverage. Although the market still favors a Fed rate cut, the impact of the shutdown on data collection and dissemination may give policymakers more reason to postpone rate cuts in December.
Investors will be watching the public statements made by Federal Reserve officials in the coming week for clues about their next move. Even if the government reopens, the Bureau of Labor Statistics is unlikely to complete the collection and processing of October and November CPI data before the December Federal Open Market Committee (FOMC) meeting. If the October data is released as scheduled, it would provide support for a rate cut at the final meeting of the year.
China and the US suspend each other's port fees for one year
The US and China have mutually suspended port charges on each other's vessels for one year and suspended related maritime practice investigations. The Trump administration suspended its investigation into the Chinese shipbuilding industry, while China shelved its own investigation and temporarily suspended the imposition of special port charges on US vessels. The Office of the US Trade Representative stated that the US will continue negotiations with China on the issues raised in the investigation.
The easing of tensions in the maritime field aligns with the overall de-escalation of the US-China confrontation following the meeting between the two leaders. Although shipping is not the most prominent issue, the majority of global trade is conducted by sea, making the shipping industry a cornerstone of global trade.
Key external markets today
The dollar index edged lower; crude oil prices edged higher, trading around $60.00 a barrel; the benchmark 10-year U.S. Treasury yield is currently at 4.1%.
Technical Analysis
(COMEX Gold Daily Chart Source: FX678)
December gold futures: The bulls' next upside target is a close above the strong resistance level of $4200.00. The bears' near-term downside target is to push futures prices below the solid technical support level of the October low of $3901.30. The first resistance level is at $4150.00, followed by $4175.00; the first support level is at $4050.00, followed by the overnight low of $4004.20.
December silver futures: Bulls have regained a solid technical advantage, with the next upside target being a close above the strong technical resistance level of $50.00. Bears' next downside target is a close below the solid support level of $46.50. First resistance is at $50.50, followed by $51.00; first support is at the overnight low of $48.235, followed by $48.00.
The gold market operates primarily through two pricing mechanisms: the spot market, where prices are quoted for immediate purchase and delivery; and the futures market, which determines the price for delivery on a specific future date. Due to year-end position adjustments and market liquidity, the most actively traded contract on the Chicago Mercantile Exchange (CME) is currently the December gold futures contract.
The US government has restarted related progress.
On Sunday, the U.S. Senate passed a procedural bill by a vote of 60 to 40, pushing forward a bill aimed at ending the federal government shutdown. A group of moderate Democrats broke with their party leaders to express support for the agreement. However, due to opposition from Democratic leaders, the bill's passage in the House of Representatives is not guaranteed. The agreement failed to meet the goals of Democratic leaders in both the House and Senate, who had previously demanded an extension of the expiring Obamacare subsidies. Democrats received a promise from Republicans to vote in mid-December on a bill to extend the Affordable Care Act tax credit. The Senate, which adjourned on Sunday, reconvened today, but has not yet scheduled a final vote.
It remains unclear when the shutdown will end. A swift end requires unanimous Senate approval, and any single senator could trigger procedural delays of several days. House Speaker Mike Johnson plans to give senators 36 hours' notice to return to Washington. President Trump stated, "It looks like we're getting closer to ending the shutdown."
Related market response
News that the US Senate is on track to pass a bill to reopen the government has boosted global stock markets, with New York markets expected to open significantly higher today. US Treasury yields rose slightly, and the dollar index also edged higher. Grain futures prices rose modestly overnight as uncertainty surrounding the interruption of USDA data releases is expected to dissipate once the data resumes. Crude oil prices reacted muted to the news.
The impact of government shutdown on Federal Reserve policy
The US government shutdown has delayed the release of key economic data such as the October Consumer Price Index (CPI) and employment report, which will prolong the discussion about whether the Federal Reserve needs to cut interest rates again at its December meeting.
The lack of official reports will make it difficult for policymakers to assess the trajectory of inflation and the labor market, and alternative indicators of government inflation data are not only difficult to obtain but also have limited coverage. Although the market still favors a Fed rate cut, the impact of the shutdown on data collection and dissemination may give policymakers more reason to postpone rate cuts in December.
Investors will be watching the public statements made by Federal Reserve officials in the coming week for clues about their next move. Even if the government reopens, the Bureau of Labor Statistics is unlikely to complete the collection and processing of October and November CPI data before the December Federal Open Market Committee (FOMC) meeting. If the October data is released as scheduled, it would provide support for a rate cut at the final meeting of the year.
China and the US suspend each other's port fees for one year
The US and China have mutually suspended port charges on each other's vessels for one year and suspended related maritime practice investigations. The Trump administration suspended its investigation into the Chinese shipbuilding industry, while China shelved its own investigation and temporarily suspended the imposition of special port charges on US vessels. The Office of the US Trade Representative stated that the US will continue negotiations with China on the issues raised in the investigation.
The easing of tensions in the maritime field aligns with the overall de-escalation of the US-China confrontation following the meeting between the two leaders. Although shipping is not the most prominent issue, the majority of global trade is conducted by sea, making the shipping industry a cornerstone of global trade.
Key external markets today
The dollar index edged lower; crude oil prices edged higher, trading around $60.00 a barrel; the benchmark 10-year U.S. Treasury yield is currently at 4.1%.
Technical Analysis
(COMEX Gold Daily Chart Source: FX678)
December gold futures: The bulls' next upside target is a close above the strong resistance level of $4200.00. The bears' near-term downside target is to push futures prices below the solid technical support level of the October low of $3901.30. The first resistance level is at $4150.00, followed by $4175.00; the first support level is at $4050.00, followed by the overnight low of $4004.20.
December silver futures: Bulls have regained a solid technical advantage, with the next upside target being a close above the strong technical resistance level of $50.00. Bears' next downside target is a close below the solid support level of $46.50. First resistance is at $50.50, followed by $51.00; first support is at the overnight low of $48.235, followed by $48.00.
The gold market operates primarily through two pricing mechanisms: the spot market, where prices are quoted for immediate purchase and delivery; and the futures market, which determines the price for delivery on a specific future date. Due to year-end position adjustments and market liquidity, the most actively traded contract on the Chicago Mercantile Exchange (CME) is currently the December gold futures contract.
- Risk Warning and Disclaimer
- The market involves risk, and trading may not be suitable for all investors. This article is for reference only and does not constitute personal investment advice, nor does it take into account certain users’ specific investment objectives, financial situation, or other needs. Any investment decisions made based on this information are at your own risk.
