Gold Hits Two-Week High Amid US Economic Concerns
By Praisebell Rosemond Larbi
Gold climbed to its highest level in two weeks on Monday, rising to about $4,050 per ounce, as mounting concerns about the US economy and a weakening dollar pushed investors toward safe-haven assets. The gains reflected a shift in market sentiment, with traders seeking protection from heightened economic uncertainty, political gridlock, and mixed signals from policymakers.
The precious metal received additional support from a softer US dollar, which made gold cheaper for international buyers and boosted global demand. The recent depreciation of the dollar has been linked to ongoing fiscal pressures and the prolonged government shutdown that has rattled investor confidence.
One of the key triggers behind the renewed rush to gold was a new report showing that US consumer confidence had fallen to its lowest point in more than three years. Analysts say the data underscores the strain caused by the longest federal government shutdown in American history, affecting everything from household spending to corporate decision-making. The prolonged political standoff has also raised fears of delayed government payments, stalled projects, and a wider drag on economic activity.
In an attempt to ease tensions, the US Senate approved the first part of a funding package aimed at restoring operations in critical departments including Agriculture, Veterans Affairs, and Congress. While the move provides some relief to government workers and agencies, it does not fully resolve the broader uncertainty that investors are watching closely.
Another key factor supporting gold’s rally is anticipation surrounding the US Federal Reserve’s next policy decision. Traders are closely monitoring whether the Fed will cut interest rates in December, with market indicators suggesting a 67% probability of a small rate reduction. Lower interest rates tend to weaken the dollar and reduce the opportunity cost of holding non-yielding assets like gold, making the precious metal more attractive.
By November 10, 2025, gold had extended its gains, trading at $4,076.20 per ounce, up 1.88% from the previous day. Despite posting a slight 0.85% decline over the past month, gold remains significantly higher year-on-year, up an impressive 55.35%. This strong annual performance reflects gold’s enduring appeal as a strategic hedge during periods of inflationary pressure, market volatility, or geopolitical conflict.
As global economic headwinds persist, analysts believe gold will continue to attract safe-haven demand in the near term. Much will depend on the strength of US economic data, the outcome of fiscal negotiations, and the Federal Reserve’s policy stance heading into the final weeks of the year.
