WASHINGTON (dpa-AFX) - Gold prices fell sharply on Thursday, snapping a four-session winning streak, as investors resorted to profit taking from the gains made during the recent rally to record highs for the yellow metal.
Front Month Comex Gold for October delivery slumped by $97.00 (or 2.40%) to $3,946.30 per troy ounce.
Front Month Comex Silver for October delivery declined heavily by $1.8060 (or 3.71%) to $46.850 per troy ounce.
The U.S. government shutdown entered day nine today. Around 750,000 federal employees have been furloughed nationwide. Yesterday, the Internal Revenue Service announced furloughing 34,000 employees.
As the Columbus/Indigenous People's Day holiday weekend is coming up, travelers are canceling trips to the U.S. A decline in tourism spending, triggered by an employee-shortage, is set to hit the economy.
The stalemate in the U.S. Congress over passage of short-term funding bill continues without a resolution at sight. Republicans and Democrats are refusing to reconcile, sticking to their demands. Both political parties are trading blame for the current impasse.
The Senate votes again today (for the seventh time) with competing proposals to reopen the government.
U.S. President Donald Trump has warned that many of the furloughed workers may not receive back pay even if the shutdown is over, though he assured members of the military that they shall be paid back.
With the nation's economy sluggish and saddled with growing unemployment, the effects of federal employees going jobless is preventing investors from long-term plans. This has helped the safe-haven metal.
In the Middle East, Israel and Hamas have agreed to the first phase of a Gaza Peace Plan proposed by Trump. This now allows the exchange of Israeli hostages and Palestinian prisoners, the withdrawal of Israeli forces from some parts of Gaza, and entry of humanitarian aid. The news brought on positive sentiments of peace returning in the Middle East and gold lost some of its value.
Yesterday, the minutes of U.S. Federal Reserve's September meeting were released. The report reflected the near unanimity among participants to reduce the interest rates, taking into account increasing labor market risks. Though the minutes indicated a split on further cuts, markets are still preparing for two more cuts this year.
In the ongoing Russia-Ukraine war, Ukraine targeted oil and refinery infrastructures in Russia, while Russian forces advanced into Ukraine and seized more territories.
Days before, Ukraine's President Volodymyr Zelenskyy had sought Tomahawk missiles from the U.S. Though Trump is yet to respond favorably, Russia today warned that it will destroy the missiles as well as their launchers and added that any such help to Ukraine would escalate the situation.
Market-moving economic releases are absent due to the ongoing shutdown in the U.S.
Traders are left with the only option of disseminating the remarks of the U.S. Federal Reserve Chair Jerome Powell and Federal Open Market Committee Vice Chair for supervision Michelle Bowman today, and later by Federal Reserve Governor Michael Barr for cues about the rate-cut direction.
Both Japan and France are saddled with huge debt, and the recent political changes in both nations has brought down their currencies, increasing uncertainty in global markets and consequently helping the precious metal.
Copyright(c) 2025 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2025 AFX News
