Gold inched higher on Thursday as the dollar slipped from a four-month high and investors remained uncertain regarding the U.S. economic outlook amid a government shutdown.
Spot gold rose 0.4% to $3,996.19 per ounce by 0712 GMT. Bullion has fallen about 9% since hitting a record high of $4,381.21 on October 20.
U.S. gold futures for December delivery added 0.3% at $4,005.60 per ounce.
"The dollar has nudged a bit lower...which has made the task easier for gold in terms of gaining traction to the upside," KCM Trade Chief Market Analyst Tim Waterer said.
The dollar fell 0.2% after hitting a four-month high in the previous session, making gold less expensive for other currency holders.
U.S. private employers added 42,000 jobs in October, exceeding Reuters' forecast of a 28,000 gain, the ADP report showed on Wednesday. The stronger labor market could temper interest rate cut hopes.
A congressional impasse has resulted in what is now the longest-ever U.S. government shutdown, forcing investors and the Federal Reserve to rely on private sector indicators.
"Gold did rather go against the grain (yesterday) by rising despite the stronger U.S. macro data because traders haven't lost sight of the fact that the current government shutdown" has been the longest one yet, Waterer added.
The Fed cut interest rates last week but Chair Jerome Powell suggested it might be the last reduction for 2025.
Market participants now see a 63% chance of a Fed rate cut in December, down from more than 90% last week.
Non-yielding gold tends to do well in low-interest-rate environments.
On the trade front, U.S. Supreme Court justices raised doubts on Wednesday over the legality of President Donald Trump's sweeping tariffs in a case with implications for the global economy.
Elsewhere, spot silver gained 0.7% to $48.40 per ounce, platinum was up 0.5% at $1,569.34, and palladium rose 1.2% to $1,436.65. - Reuters
