Gold and Silver rally amid US shutdown relief

Gold and silver prices climbed to three-week highs early Tuesday, building on Monday’s strong momentum.

The rally is being fueled by expectations that the U.S. government will soon end its historic shutdown, which could restart the flow of economic data and increase the chances of a Federal Reserve interest rate cut in December.

Gold futures rose by $23.90 to $4,146.00, while silver futures jumped $0.594 to $50.089.

A likely deal in Congress to reopen the government is seen as a gateway to weaker economic indicators, potentially prompting Fed policy easing.

Lower interest rates tend to support precious metals by weakening the dollar and improving their investment appeal globally.

Gold is on pace for its best year since 1979, with both gold and silver hitting record highs in October.

While global stock markets were mixed, U.S. equities opened weaker.

Meanwhile, the Senate passed a temporary funding bill to keep the government running into 2026, with House approval expected soon.

The legislation includes back pay for furloughed federal workers and blocks layoffs through the end of January.

In other news, President Trump indicated progress in U.S.-India trade talks, suggesting tariff reductions and highlighting India's reduction in Russian oil imports.

He emphasized deeper ties in investment, energy, and security during the swearing-in of the new U.S. ambassador to India.

On the economic front, U.S. small business sentiment dipped in October, with hiring challenges and declining sales weighing on confidence.

The NFIB’s Small Business Optimism Index fell to a six-month low of 98.2.

In commodities, the U.S. dollar edged lower, crude oil hovered at $60.50 per barrel, and 10-year Treasury yields stood at 4.12%.

Technically, gold and silver both show bullish momentum, with traders eyeing $4,250 and $53.765 as key resistance levels, respectively.

Support for gold is near $4,000, while silver finds a floor around $48.235.