Gold prices held onto gains during Asian trading on Thursday, stabilizing after a sharp rise of more than 1% in the previous session. A softer U.S. dollar and continued uncertainty surrounding the prolonged U.S. government shutdown helped sustain investor demand for the safe-haven metal.

Spot gold rose 0.2% to $3,988.79 per ounce by 00:37 ET (05:37 GMT), while U.S. gold futures inched up 0.1% to $3,995.70 per ounce.

The metal had surged 1.3% in the prior session amid heightened risk aversion and renewed concerns about a possible stock market bubble.

Gold Steadies as Dollar Retreats; Shutdown Stays in Focus

The U.S. Dollar Index fell 0.2% in Asian trading, extending losses as investors shifted back into risk assets after a brief sell-off in tech stocks earlier this week. Wednesday’s rebound on Wall Street eased concerns about stretched valuations in the sector.

Even so, the ongoing U.S. government shutdown — now the longest in history — continues to cast a shadow over markets. The suspension of key federal economic data releases has left traders dependent on private-sector reports, complicating efforts to assess the strength of the U.S. economy.

Meanwhile, labor market data remained resilient. The latest ADP report showed that private-sector employment rose by 42,000 in October, nearly double economists’ expectations.

The stronger jobs data tempered hopes for a Federal Reserve rate cut in December. Since gold offers no yield, expectations of higher-for-longer rates tend to limit its upside.

Adding to market caution, the U.S. Supreme Court this week began hearings on the legality of tariffs enacted under former President Donald Trump — a case that could have lasting implications for trade policy, inflation, and supply chains.

“We remain positive on our gold outlook, despite the recent pullback in prices, with key supports, including central bank and safe haven demand, still in place,” ING analysts said in a note.

“Although trade tensions have recently eased, significant geopolitical uncertainty persists, driving demand for safe assets,” they added.

Other Metals Trade in Narrow Ranges

Broader metals markets remained subdued. Silver futures edged up 0.2% to $48.12 per ounce, while platinum futures were steady at $1,564.60 per ounce.

On the industrial side, benchmark copper futures on the London Metal Exchange gained 0.4% to $10,771.20 per ton, and U.S. copper futures rose 0.6% to $5.02 per pound.

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