Gold prices extended their rally in Asian trading on Thursday, rising above $4,200 per ounce as investors remained cautious about the U.S. economic recovery even after the government ended its 43-day shutdown.
Spot gold rose 0.4% to $4,210.63 per ounce, while December futures held steady at $4,214.60. Strong central bank buying — particularly from the People’s Bank of China, which added to its reserves for a 12th consecutive month in September — continued to provide solid support for bullion.
Although traders trimmed bets on a December rate cut by the Federal Reserve, lingering uncertainty over the economic impact of the shutdown and weaker private employment data kept safe-haven demand for gold intact. The probability of a 25-basis-point cut dropped to 50.4% from 62.4% the previous day, according to CME FedWatch data.
“Gold remains supported by expectations of weaker U.S. data and sustained central bank demand,” said analysts at ANZ.
Among other precious metals, silver jumped 1.7% to $54.17 per ounce, and platinum inched up 0.1% to $1,620.15.
Copper also gained as optimism about the U.S. government reopening and China’s renewed commitment to boosting industrial output improved sentiment. LME copper futures edged up 0.2% to $10,933.80 per metric ton.