Gold (XAUUSD) is up by over 2% on Monday, reaching a two-week high and reclaiming the $4,100 level. That comes amid the Senate advancing a bill that could reopen the government until January 30, 2026, although the end of the government shutdown could also lead to the release of some startling economic data.
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“A reopening would restore data flow and revive expectations for a December rate cut, but more importantly it shifts market focus back to the deteriorating U.S. fiscal outlook,” said analysts at Saxo Bank.
Gold Rises as Federal Jobs and Inflation Data Loom
Gold thrives during times of economic uncertainty given its status as a safe haven asset. When the government reopens, federal agencies will be able to resume publishing inflation and labor data. As a result, gold could benefit if the data points to persistent inflation and continued weakness in the labor market.
Last week, outplacement firm Challenger, Gray & Christmas reported 153,074 job cuts in October, up by 175% year-over-year and marking the highest total for the month since 2003. Gold’s rally could continue as investors weigh the impact of new economic data once the government reopens.
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