By: Economy Middle east

Gold prices extended their rally on Thursday, rising for a fifth consecutive session to reach their highest level in more than three weeks. This rise was driven by expectations that the reopening of the U.S. government would resume the flow of key economic data, reinforcing bets of additional interest rate cuts this year.

In the UAE, gold rates marked notable increases, with 24-carat gold gaining AED2.5 to AED507.25 and 22-carat gold rising AED2.75 to AED469.75. Additionally, 21-carat gold edged up AED2.25 to AED450.25, and 18-carat gold gained AED2 to AED386.

Globally, spot gold climbed 0.13 percent to $4,212.47 per ounce as of 5:29 GMT, its strongest since October 21. Meanwhile, U.S. gold futures for December delivery gained 0.15 percent to $4,219.90 per ounce.

Trump signs deal to end government shutdown

U.S. President Donald Trump signed on Wednesday legislation to end the longest government shutdown in the nation’s history. The shutdown, which began on October 1, had stalled the release of key economic indicators, including payroll and inflation data, leaving markets without crucial insights into the health of the U.S. economy.

Expectations of softer economic data following the U.S. government shutdown added support to gold prices, as investors sought safety amid uncertainty over the strength of the U.S. recovery.

Economists have urged the U.S. Labor Department’s statistical agency to prioritize releasing the November employment and inflation reports to provide Federal Reserve officials with the latest data ahead of their December policy meeting.

Traders are currently pricing a 55.6 percent chance of a 25-basis-point rate cut next month, down from 91.7 percent a month earlier, according to the CME FedWatch tool.

Gold, which offers no yield, typically benefits from lower interest rates and heightened economic uncertainty, both of which enhance its appeal as a safe-haven asset.

Gold on track to record fresh highs next year

Gold prices climbed to record highs in early October before easing in recent weeks. The surge was fueled by strong safe-haven demand amid heightened geopolitical tensions and broader economic concerns, helped by a weaker U.S. dollar and U.S. monetary easing.

Gold demand also rose 10 percent in the first three quarters of 2025, led by strong investment inflows, including from gold-backed ETFs and continued central bank purchases.

“Prices are set to rise by around 42 percent in 2025, marking the strongest annual gain since the late 1970s,” said the World Bank in a recent report.

Gold briefly exceeded $4,300 per ounce and silver touched $54 per ounce in October before easing back, while platinum has also posted solid gains this year. Gold is on track to record fresh highs next year, supported by safe-haven demand, including continued central bank buying, added the report.

Other precious metals

As gold prices rose on Thursday, the precious metals market saw mixed movement. Spot silver gained 1.32 percent to $54.12, while platinum eased 0.02 percent to $1,614.77. Meanwhile, palladium gained 0.33 percent to $1,478.75.