Gold prices head higher as deal to end US shutdown remains elusive

Gold (GC=F)

Gold prices continued a five-day uptick on Friday in a week which saw futures head past the $4,000 an ounce mark for the first time.

The yellow metal, which typically rallies in times of political uncertainty, has thrived amid various economic shocks over the past few months. The latest of these is the US government shutdown, which is in its second week.

The standoff between US president Donald Trump and Congress has meant non-essential government workers are on unpaid leave, with services related to air travel, taxpayer services and national parks grinding to a halt.

Gold (GC=F) futures rose 0.8% on Friday, heading, again, past the $4,000 an ounce mark. Spot gold also rallied about 1%, just under the $4,000 an ounce mark.

"Long term it still looks good," Neil Wilson, UK investor strategist at Saxo Markets said.

COMEX - Delayed Quote•USD

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4,007.90

+35.30

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As of 6:18:38 AM EDT. Market Open. Advanced Chart

"BofA [Bank of America] notes that "still few structurally long gold", and the average gold jump past four bull markets is about 300% in 43 months ... so $6,000 peak next spring? Front running the next Fed chair is part of the story expecting looser monetary policy – Treasury secretary Scott Bessent wrapped up the first round of interviews for the next Fed chair this week.

"But for now some profit taking/consolidation – also as discussed yesterday the peace dividend factor for gold is something to consider as some of the geopolitical risk premia that’s been in the price is removed."

Pound (GBPUSD=X, GBPEUR=X)

Sterling was almost flat against the dollar (GBPUSD=X) on Friday, falling slightly after a week that saw it lose about 1% of its value relative to the greenback.

The pound has broadly gained against the dollar this year amid geopolitical uncertainty sewn by president Trump's trade policies, among other things. But this week it lost ground as traders wait for new data and direction on the UK economy.

It's still over a month and a half until chancellor Rachel Reeves' next budget on 26 November, which will give more of a read on the future growth prospects of the UK. Meanwhile, the next Bank of England meeting is on 6 November, giving an update on interest rates.

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1.3290

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The dollar index (DX-Y.NYB), which tracks the greenback against a basket of six other currencies, declined 0.3%.

The pound also fell against the euro (GBPEUR=X), dipping 0.2% to the 1.148 mark.

Oil (BZ=F, CL=F)

Oil (BZ=F, CL=F) prices dipped on Friday, moving lower as it appeared the conflict between Gaza and Israel is winding down as a ceasefire deal takes effect and the region implements a 20-point peace plan proposed by president Trump.

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Under the agreement Israel's military will partially withdraw from Gaza, while humanitarian aid will be given full entry. There will also be a release of all the Israeli hostages, alive and dead, being held by Hamas. The first part of the agreement was a ceasefire, which took effect earlier today.

Brent crude (BZ=F) futures lost about 0.7% to trade at around $64.74, while West Texas Intermediate (CL=F) futures lost 0.7%, and was changing hands at $61.08 per barrel.

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64.54

-0.68

(-1.04%)

As of 6:18:17 AM EDT. Market Open. BZ=FCL=F

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Oil prices have been volatile over recent weeks as traders feared the next supply moves by OPEC+.

On Sunday, OPEC plus Russia and some smaller producers, said it would raise production from November by 137,000 barrels per day, matching October's figure.

The production increase was more modest than expected, tempering some concerns about a supply glut, though a soft outlook for demand is likely to cap near-term gains.

The decision coincides with a rise in Venezuelan exports, the resumption of Kurdish oil flows via Turkey, and the presence of unsold Middle Eastern barrels for November loading.

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