Gold prices climbed sharply in Asian trading on Monday, regaining the $4,000 per ounce level as a softer U.S. dollar and renewed optimism about an end to the government shutdown lifted investor sentiment.

The precious metal also benefited from continued speculation that the Federal Reserve may cut interest rates in December, though uncertainty remains high due to limited economic data amid the ongoing shutdown.

By 23:43 ET (04:43 GMT), spot gold rose 1.4% to $4,053.72 per ounce, while December gold futures gained 1.3% to $4,062.45 per ounce.

Metals Rally on Softer Dollar and Rate Cut Bets

Gold and other precious metals extended their gains as the U.S. dollar weakened, continuing a mild downtrend from last week. Traders maintained expectations that the Fed could trim rates by 25 basis points in December, a view reinforced by recent signs of strain in the U.S. labor market.

Data from Challenger, Gray & Christmas revealed that October saw the highest number of layoffs in nearly two decades, fueling concerns about economic momentum and prompting markets to price in a 61.9% probability of a rate cut, according to the CME FedWatch Tool.

The broader metals complex also moved higher alongside gold. Spot platinum climbed 1.4% to $1,571.92 per ounce, while spot silver advanced 1.8% to $49.22 per ounce.

Markets Cheer Progress Toward Ending U.S. Shutdown

Investor sentiment was further buoyed by political developments in Washington, where the U.S. Senate voted 60–40 to advance a spending bill aimed at reopening the federal government after its longest shutdown in history.

The measure represents a breakthrough after weeks of partisan gridlock and paves the way for a final vote expected in the coming days. A resolution would not only restore federal operations but also resume the release of key U.S. economic data, giving markets fresh insight into the health of the economy.

With the dollar under pressure and hopes rising for a political compromise, gold’s appeal as a hedge against uncertainty gained renewed strength, pushing prices solidly above the symbolic $4,000 threshold.

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