Gold Surges as Dollar Weakens, Driving Prices Higher

Gold climbed for the fourth straight day Wednesday as the dollar weakened and investors bet that an end to the US government shutdown plus incoming economic data will boost chances of American interest rate cuts next month.

Spot gold rose 0.4% to $4,142.70 per ounce by 0012 GMT, after hitting its highest level since October 23 on Tuesday. US gold futures for December delivery jumped 0.8% to $4,149.20 per ounce.

The rally reflects growing market confidence that the Federal Reserve will pivot toward looser monetary policy. When interest rates fall, gold becomes more attractive since it doesn't pay yield like bonds or savings accounts. A weaker dollar also makes gold cheaper for buyers using other currencies.

The government shutdown has delayed key economic reports that traders use to gauge the health of the US economy. Once normal data flow resumes, many expect the numbers to show enough economic softness to justify rate cuts. This expectation is already driving gold higher as investors position themselves ahead of potential Fed action.

Other precious metals showed mixed results. Silver edged up 0.1% to $51.29 per ounce, while platinum slipped 0.1% to $1,583.10. Palladium held steady at $1,443.56.

For gold miners and precious metals investors, this four-day streak signals renewed appetite for safe-haven assets. But the real test comes when economic data starts flowing again and shows whether the US economy is actually weak enough to warrant the rate cuts that markets are pricing in.