Gold extends gains on Thursday

Gold prices reclaimed the key $4,000-per-ounce level on Thursday, extending gains from the previous session, aided by a softer US dollar and lingering economic uncertainty.

The US government entered its longest-ever shutdown, complicating the assessment of the economic outlook and placing greater importance on private-sector data.

US private payrolls rose by 42,000 in October, surpassing forecasts of 25,000, while the ISM Services PMI hit an eight-month high.

The figures reinforced expectations that there is little room for further rate cuts, with inflation still above target. This comes against the backdrop of a hawkish tone from several Fed officials, aligning with Chair Powell’s recent remarks suggesting that the latest rate cut could be the last for this year.

Still, some policymakers reiterated that interest rates should move lower over time. Adding pressure on gold, improved sentiment toward riskier assets reduced its safe-haven appeal.