GOLD rose for a fourth straight session on Wednesday, supported by a weaker dollar and expectations that the reopening of the US government and flow of economic data will strengthen bets for an interest rate cut from the Federal Reserve next month.
Spot gold was up 0.4 per cent at US$4,142.70 per ounce by 0012 GMT, after hitting its highest since Oct 23 on Tuesday.
US gold futures for December delivery rose 0.8 per cent to US$4,149.20 per ounce.
The US Senate passed a deal on Monday to restore federal funding after a record-long shutdown that has disrupted food benefits for millions, left hundreds of thousands of federal workers unpaid, snarled air traffic, and delayed the release of government economic data.
The deal still needs approval in the House of Representatives, where Speaker Mike Johnson has said he wants a vote as soon as Wednesday. It will then go to US President Donald Trump to be signed into law.
Traders are pricing in a roughly 68 per cent probability that the US central bank will cut rates by 25 basis points next month, up from 64 per cent in the previous session, according to CME Group’s FedWatch tool.
Non-yielding gold tends to do well in a low-interest-rate environment and during economic uncertainties.
SPDR Gold Trust GLD, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.41 per cent to 1,046.36 metric tons on Tuesday from 1,042.06 tons on Monday.
Elsewhere, spot silver firmed 0.1 per cent to US$51.29 per ounce, platinum eased 0.1 per cent to US$1,583.10, and palladium was steady at US$1,443.56. REUTERS
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