Happy Friday, traders. Welcome to our weekly market wrap, where we take a look back at these last five trading days with a focus on the market news, economic data, and headlines that had the most impact on gold prices and other key correlated assets—and may continue to in the future.
Here’s what you need to know:
Gold spot prices hovered near the $4,000/oz level after early-week volatility and a brief dip below support.
The ongoing U.S. government shutdown has fueled investor caution, weakening the U.S. Dollar late in the week.
Consumer sentiment hit one of the lowest readings in history, suggesting fear and uncertainty could support gold prices heading into November.
Despite a late rebound, traders remain alert to potential downside risk if shutdown resolution headlines emerge.
Gold spot prices tested a boundary of support early this week but have otherwise traded relatively flat on the week. With a pickup of between $10–$20/oz (as of midday Friday), the yellow metal has held on to a valuation near $4,000/oz—an important signal of institutional interest moving toward year-end. With the U.S. government shutdown carrying on (despite some assertions that the close of an election cycle would prompt legislators to cut a deal), traders continue to navigate projections around monetary policy and labor markets without hard data to guide them.
The most notable move on the gold chart came Tuesday morning. After rebounding above $4,000 on Monday, gold saw a moderate sell-off through the first sessions of the week. Asian traders extended the slide, pushing prices back below the round number, which appeared to spook U.S. markets. As New York opened, gold dropped sharply to $3,930/oz—classic behavior when a fast run-up is perceived as “overdone” and encounters early weakness. By Tuesday afternoon, concerns mounted that gold could fall further before the December FOMC meeting.
Despite the chatter about a correction, the pattern didn’t hold. As Tuesday afternoon turned into overnight trading, bargain hunters stepped back in, driving spot prices to $3,985/oz by Wednesday night. The metal has since stabilized. Growing discomfort over the prolonged federal shutdown—combined with a softening U.S. Dollar on Thursday and Friday—gave gold the tailwind it needed to reclaim the $4,000 mark. A bleak consumer sentiment survey released Friday morning, among the most negative on record, points to fear and uncertainty that could continue to benefit gold in November.
