Gold Prices Near Highs as Government Shutdown Risk Sparks Safe-Haven Demand

Investing.com – Gold prices traded close to four-month high amid US government shutdown fears but rising US yields capped upside momentum.

for February delivery on the Comex division of the New York Mercantile Exchange fell by $6, or 0.45%, to $1,333.20 a troy ounce.

The prospect of a government shutdown stoked support for safe-haven demand, lifting gold prices near four-month highs but gains were capped amid a rise in treasury yields, and reports suggesting that president Donald Trump invited Senate minority leader Chuck Schumer to the White House to work out a deal to avoid a government shutdown.

Senate Minority Leader Chuck Schumer will go to the White House on Friday to meet with President Donald Trump about a possible deal to avoid a government shutdown, CNBC reported, citing a source familiar with the meeting.

Gold is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion.

The fall in gold comes amid comments from Macquarie warning that the risks of a reversal in gold prices are rising, as it is “harder for gold to ignore the impressive snapback in real yields” since the turn of the year.

The bank said $1,320 to $1,325 is the support zone for gold prices, adding that the market will likely find buyers around these levels.

In other precious metal trade, rose 0.51% to $17.04 a troy ounce, while rose 1.11% to $1,018.40.

fell 0.41% to $3.19, while fell 0.06% to $3.19.

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