Gold prices steadied on Wednesday, trapped in a tight range as risk appetite improved on optimism that the longest-ever US government shutdown could soon end. The metal cooled after a two-day rebound, while uncertainty over the Federal Reserve’s next policy move kept investors cautious.
Spot gold was trading at $4,124 an ounce by 10:00 GMT.
The Senate this week approved a measure to unlock federal funding, paving the way for the House of Representatives to vote on the bill later today. The Republican-controlled chamber is expected to pass it, clearing the path for President Donald Trump’s signature.
The prospect of the shutdown, now in its 42nd day, coming to an end helped lift broader market sentiment, curbing safe-haven demand for gold.
Still, bullion held above the key $4,000 mark, supported by lingering uncertainty over US interest rates and trade policy. The Supreme Court’s review of Trump’s trade tariffs added a layer of unpredictability, although a ruling is not expected soon.
Traders remain focused on the Federal Reserve’s December meeting, with markets now pricing in a 62.4% chance of a 25-basis-point rate cut, up from 57.8% a day earlier, according to CME’s FedWatch tool.
The end of the government shutdown is also expected to clear the way for delayed economic data releases, offering more clues on the health of the US economy and the Fed’s policy outlook.