Meanwhile, political gridlock in Congress has prevented the passage of funding measures after more than a dozen failed attempts, creating uncertainty that has made investors turn toward traditional hedges like gold and silver.
“Markets don’t like uncertainty, and the longer this persists, the stronger the case for safe-haven assets,” said one commodities analyst at ANZ Research. “The metal’s resilience shows traders are not pricing in a quick resolution.”
Weak Labor Data Fuels Fed Cut Bets
Labor market indicators also reinforced the defensive tone. Private payroll data showed the loss of 9,100 jobs in October, while government employment declined by more than 22,000.
The Chicago Fed’s activity index indicated a mild uptick in unemployment, suggesting that the labor market, once the economy’s strongest pillar, may be cooling.
These signs of weakening employment have revived expectations that the Federal Reserve could deliver another rate cut in December. Traders now price in a 72% probability of a rate reduction, according to CME’s FedWatch Tool.
The anticipation has capped dollar strength and strengthened demand for non-yielding assets like gold and silver.
