Gold edges higher with weakening US economy aiding haven demand

Gold edged higher as the market weighed a weakening US economy against progress on ending the government shutdown.

Bullion traded near $4,017 an ounce after finishing last week little changed. The precious metal advanced on Friday as a measure of US consumer sentiment fell to near the lowest on record, with the shutdown and rising prices souring the outlook.

The record-breaking shutdown, meanwhile, appears to be nearing an end after a group of moderate Senate Democrats agreed to support a deal to reopen the government, people familiar with the talks said.

Gold has retreated around 8% since hitting a record high above $4,380 an ounce in mid-October. It’s still up more than half this year, however, and most of the factors that have propelled the blistering rally — heightened economic and geopolitical uncertainties and elevated central bank and retail buying — are still in place.

Spot gold rose 0.4% to $4,016.92 an ounce as of 8:30 a.m. Singapore time. The Bloomberg Dollar Spot Index added 0.1%. Silver, platinum and palladium all advanced.