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Gold prices climbed to a near three-week high on Tuesday, supported by growing expectations of another U.S. Federal Reserve rate cut as the government shutdown draws to a close.
As of 4:03 a.m. GMT, spot gold rose 0.8% to $4,149.06 per ounce at its intraday high, extending the renewed surge that began on Monday to a 3% gain. U.S. gold futures for December delivery also increased to $4,136.5.
The buyout followed the U.S. Senate’s late-night approval of an agreement to restart federal funding and bring an end to the country’s longest-ever government shutdown.
The shutdown had delayed the release of key economic indicators—including the consumer price index and non-farm payroll reports—prolonging uncertainty about the strength of the U.S. economy and the Fed’s next policy move.
The resumption of government operations is expected to clarify the economic outlook and the timing of future monetary adjustments ahead of the Fed’s final policy meeting of the year.
While Fed Chair Jerome Powell recently cautioned that a December rate hike was "not a foregone conclusion," market participants remain largely focused on the likelihood of rate cuts instead.
Futures data from CME Group’s FedWatch Tool indicate a roughly 63.5% probability of a rate cut next month, which would bring the benchmark rate to a range of 3.5% to 3.75%, reflecting confidence that cooling inflation will allow the Fed to ease policy.
The U.S. dollar index was last seen slightly higher at 99.621, with the greenback’s renewed momentum acting as a moderate headwind for gold prices in the short term.
Silver mirrored gold’s uptick, holding firm above near-term support at $48 an ounce and rallying back above $50 to $50.88 per ounce. The metal regained traction after being officially added to the U.S. Geological Survey’s (USGS) 2025 List of Critical Minerals, a designation expected to boost industrial demand for silver.
The inclusion could tighten global supply chains as industries increase their consumption of silver for electronics and renewable energy technologies, potentially sustaining bullish sentiment in precious metal markets in the months ahead.
Other precious metals, platinum and palladium, also edged higher, reaching $1,580.86 and $1,448.34 per ounce, respectively.
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