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Gold advanced more than 1% on Wednesday ahead of a key vote that could end the US government’s longest-ever shutdown, which would offer economic clarity and set the stage for the Federal Reserve’s next move.
Spot gold rose 1.3% to $4,179.12 an ounce, its highest since the week of October 20, when it hit an all-time high of nearly $4,381 per ounce.
Meanwhile, US gold futures shot up 1.6% to trade at $4,182.70 an ounce in New York.
Wednesday marks the day on which the US House of Representatives will vote on a funding deal that would end the 42-day government shutdown, the longest in American history. The Senate has already approved the spending package, backed by a group of Democrats.
Wall Street opened the trading session higher as investors cheered the likely resumption of official economic data releases once the shutdown ends, which could raise the chances of a Fed rate cut next month should they confirm the economic signals shown in private sector data.
“Recent price action would suggest that any hiccups on House approval, like a delay, would cause both stocks and precious metals to stumble quickly,” Tai Wong, an independent metals trader, told Reuters, referencing the vote to end the US government shutdown.
With the US government shutdown likely ending as soon as today, gold has surged to $4,100 this morning. Where do you see the closing price on December 31, 2025?
— MINING.COM (@mining) November 10, 2025
Gold has pulled back from last month’s record high as investors took profits from a rally some feared had gone too far, too fast. In a sharp reversal, gold-backed exchange-traded funds have booked three straight weeks of net outflows, according to data compiled by Bloomberg.
Still, the precious metal remains up by more than 55% this year, and is on track for its best annual performance since 1979, supported by a number of factors including lower interest rates and elevated central-bank buying.
This week, bullion showed signs of starting another rally in anticipation of a December rate cut, with the metal holding the key $4,000-an-ounce level.
Next push higher
Gold’s recent rebound above $4,100 reflected a deeper unease beneath the general optimism around the government’s reopening, Hebe Chan, an analyst at Vantage Markets in Melbourne, said in a note to Bloomberg.
“The lingering ripple effects from the longest government shutdown in US history have likely left a lasting mark, keeping safe-haven demand for gold alive despite the broader risk-on mood,” she emphasized.
Bullion would likely consolidate further before its next push higher in 2026, said Charu Chanana, chief investment strategist at Saxo Markets in Singapore.
“We could see more broadening of the US equity market as flows are diverted from overbought assets, such as gold and AI names, to those that have been out of favor,” she added.
(With files from Bloomberg and Reuters)
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