Gold prices rise again as U.S. consumer confidence index drops

SadaNews - Gold rose for the second consecutive day as the market evaluated the performance decline of the U.S. economy, which enhances the likelihood of an interest rate cut next month, in contrast to news about progress towards ending the government shutdown.

Prices of bullion jumped by up to 2%, trading above $4,070 an ounce after ending last week with little change. The precious metal had risen on Friday after one of the U.S. consumer confidence indices dropped to levels close to its historical lows, amidst the government shutdown and rising prices that weakened economic forecasts.

It appears that the historic government shutdown is nearing its end after several moderate Democratic senators agreed to support a deal to reopen the government, according to individuals familiar with the talks.

Gold remains down compared to the beginning of the year

Gold has fallen by about 8% since it hit a record high of over $4,380 an ounce in mid-October, but it is still up by more than half since the beginning of the year.

However, most of the factors that fueled the strong surge, including increasing economic and geopolitical uncertainty, and continued purchases by central banks and individual investors, remain in place.

Spot gold rose by 1.8% to $4,071.55 an ounce by 2:27 PM Singapore time. Meanwhile, the Bloomberg dollar index remained stable. Silver rose by 2.4%, and both platinum and palladium also gained.