Gold prices remained steady on Wednesday as investors closely watched the U.S. House of Representatives prepare to vote on a pivotal measure aimed at reopening the federal government. The vote could bring much-needed clarity to the U.S. economic landscape and shape the Federal Reserve’s potential interest rate decisions in the months ahead.

As of 11:58 GMT, spot gold was stable at $4,125.22 per ounce, while U.S. gold futures for December delivery increased by 0.4% to $4,130.90 per ounce, reflecting cautious optimism among market participants.

“Investors are awaiting clearer signals regarding the government shutdown and the upcoming U.S. economic data,” said UBS analyst Giovanni Staunovo. “We are likely seeing a temporary stabilization in gold prices before the next upward move. Structurally, nothing has shifted fundamentally in the market.”

Gold Prices Surge Amid Economic Uncertainty

Gold has been on a remarkable upward trajectory, surging over 57% year-to-date. The metal hit a record high of $4,381.21 per ounce on October 20, fueled by geopolitical tensions, economic concerns, easing Federal Reserve monetary policy, global de-dollarization trends, and robust inflows into gold-backed ETFs.

The U.S. Senate recently approved a deal to restore federal funding following a record-breaking government shutdown. House lawmakers returned to Washington on Tuesday to vote on the measure, which could formally end the standoff and stabilize market expectations.

Economic Indicators Influence Gold Demand

Investors are keeping a close eye on U.S. economic indicators. Payroll processor ADP reported that U.S. companies were cutting more than 11,000 jobs per week through late October, highlighting ongoing labor market pressures.

Meanwhile, the market’s expectations for Federal Reserve rate cuts have increased. According to CME Group’s FedWatch tool, there is now a 67% probability of a 25-basis-point reduction in interest rates at the Fed’s December 10 meeting, up from 62% a day earlier.

“Gold prices have decisively broken above the $4,050 resistance level after a consolidation phase, confirming a continuation of the bullish momentum,” said ANZ in a market note. “The next resistance zone is $4,160-$4,170 per ounce. A breach of this range could propel gold prices towards the previous record high of $4,380 per ounce.”

Long-Term Outlook: Gold Could Surpass $5,000

JP Morgan analysts remain bullish on gold, projecting that both central banks and private investors will continue to buy gold during market dips. The investment bank predicts that gold prices could exceed $5,000 per ounce by the fourth quarter of 2026, signaling strong long-term demand.

Other Precious Metals Movements

While gold remains in focus, other precious metals saw mixed movements:

• Spot silver rose 0.6% to $51.51 per ounce.
• Platinum declined 0.5% to $1,579.85 per ounce.
• Palladium fell 1.5% to $1,422.25 per ounce.

Investors and market analysts will continue to monitor the unfolding U.S. government developments, global economic indicators, and central bank policies for signals on future gold and precious metal trends.