Gold inched higher on Thursday as the dollar slipped from a four-month high and investors remained uncertain regarding the U.S. economic outlook amid a government shutdown.
Spot gold rose 0.4 percent to US$3,996.19 (HK$31,170.05) per ounce by 0712 GMT. Bullion has fallen about 9 percent since hitting a record high of US$4,381.21 on October 20.
U.S. gold futures for December delivery added 0.3 percent at US$4,005.60 per ounce.
"The dollar has nudged a bit lower...which has made the task easier for gold in terms of gaining traction to the upside," KCM Trade Chief Market Analyst Tim Waterer said.
The dollar fell 0.2 percent after hitting a four-month high in the previous session, making gold less expensive for other currency holders.
U.S. private employers added 42,000 jobs in October, exceeding Reuters' forecast of a 28,000 gain, the ADP report showed on Wednesday. The stronger labor market could temper interest rate cut hopes.
A congressional impasse has resulted in what is now the longest-ever U.S. government shutdown, forcing investors and the Federal Reserve to rely on private sector indicators.
"Gold did rather go against the grain (yesterday) by rising despite the stronger U.S. macro data because traders haven't lost sight of the fact that the current government shutdown" has been the longest one yet, Waterer added.
The Fed cut interest rates last week but Chair Jerome Powell suggested it might be the last reduction for 2025.
Market participant's now see a 63 percent chance of a Fed rate cut in December, down from more than 90 percent last week.
Non-yielding gold tends to do well in low-interest-rate environments.
On the trade front, U.S. Supreme Court justices raised doubts on Wednesday over the legality of President Donald Trump's sweeping tariffs in a case with implications for the global economy.
Elsewhere, spot silver gained 0.7 percent to US$48.40 per ounce, platinum was up 0.5 percent at US$1,569.34, and palladium rose 1.2 percent to US$1,436.65.
REUTERS
