Market Focus Shifts: Gold Starts the Week with a Sharp Rise
Gold prices began the week with a sharp rise of nearly 2%, as optimism over the reopening of the U.S. federal government shifted investor attention toward monetary policy.
U.S. Government Reopening Agreement
Democrats and Republicans in the U.S. Senate reached a deal on a temporary budget to end the nation’s longest government shutdown, which lasted 40 days. The bill passed the Senate 60-40 and is expected to be approved by the House and signed by President Donald Trump to officially reopen the government.
Positive Reaction in Global Markets
Asian markets responded positively. Japan’s Nikkei 225 gained 1.33%, South Korea’s Kospi jumped 3.02%, while China’s Shanghai Composite added 0.5% and Hong Kong’s Hang Seng rose 1.5%.
In Turkey, the Borsa Istanbul BIST 100 index opened the week 0.84% higher at 11,014 points.
Investors Refocus on the Fed
According to Vasu Menon of Oversea-Chinese Banking, when government shutdown risks subside, investors typically turn their focus to the Federal Reserve’s policy outlook. He noted that if delayed economic data are released, it could give the Fed more room to ease policy earlier should growth slow.
Gold Starts the Week Higher
After closing at $4,001 per ounce on Friday, spot gold climbed nearly 2% to $4,079 in early trading. Similarly, gram gold rose 1.83% to start the week at ₺5,533.
