By Anmol Choubey
(Reuters) -Gold prices were steady on Wednesday as investors awaited a U.S. House of Representatives vote on a deal to reopen the federal government, which could pave the way for clarity on economic data and the potential path for Federal Reserve rate cuts.
Spot gold was steady at $4,131.80 per ounce, as of 0837 GMT. U.S. gold futures for December delivery rose 0.5% to $4,137.20 per ounce.
“Everyone is awaiting more clarity on the government shutdown and when the data is coming out of the U.S. again,” said UBS analyst Giovanni Staunovo.
“It’s probably some stability before prices keep going up … we are still in an uptrend when it comes to the gold prices. Nothing from the structural side has completely changed,” Staunovo added.
Gold prices have surged more than 57% year-to-date, reaching a record high of $4,381.21 on October 20, driven by geopolitical tensions, economic concerns, easing Fed monetary policy, de-dollarization, and strong gold-backed ETF inflows.
The U.S. Senate approved a deal on Monday to restore federal funding after a record-breaking government shutdown. House lawmakers returned to Washington on Tuesday to vote on the measure that could formally resolve the standoff.
Economic data remains a focus, with payroll processor ADP reporting on Tuesday that U.S. companies were cutting more than 11,000 jobs per week through late October.
Meanwhile, market expectations for monetary policy have shifted, with CME Group’s FedWatch tool showing a 67% probability of a 25 basis point rate cut at the Fed’s next meeting on December 10, up from 62% a day earlier.
“Gold’s prices have broken above $4,050 resistance level after a consolidation. This confirms a continuation of the prevailing bullish momentum. Yet, the next resistance zone is $4,160-$4,170/oz, breach of this range will push prices towards the record high of $4,380/oz,” ANZ said in a note.
JP Morgan, in a note on Wednesday, said it expects central banks and consumers to emerge as reliable buyers during price dips and forecast gold prices to exceed $5,000 by the fourth quarter of 2026.
Elsewhere, spot silver gained 1.2% to $51.84 per ounce, platinum rose 0.4% to $1,580 and palladium was up 0.3% to $1,440.75.
(Reporting by Anmol Choubey in Bengaluru; Editing by Alexander Smith)
