Gold prices fell 1% on Thursday (November 13), retreating from a three-week high earlier in the session amid a broad market selloff following the US government reopening.

Spot gold fell 1.1% to $4,151.86 an ounce at 2:16 p.m. EST (19:16 GMT). Elsewhere, spot silver fell 2.3% to $52.18 after hitting its highest level since October 17 earlier in the session. US gold futures for December delivery closed 0.5% lower at $4,194.50.

The US government is set to resume operations after a record-breaking 43-day government shutdown, under an agreement that funds federal operations through January 30.

"Precious metals are caught in a broad selloff, with stocks, bonds, the dollar, and crypto all under pressure and in the red," said Tai Wong, an independent metals trader. "It's a classic buy-the-rumor, sell-everything scenario after the US government reopens."

Earlier in the trading session, spot gold hit a session high of $4,244.94, its highest level since October 21. Initially, gold and silver markets rallied on expectations that economic data released after the government shutdown ended would reveal a weakening US labor market and prompt the Fed to cut interest rates at least once in December, said Jim Wyckoff, senior analyst at Kitco Metals.

However, given inflation concerns and signs of relative stability in the labor market after two US interest rate cuts this year, a growing number of Federal Reserve policymakers have signaled hesitation about further easing.

Private surveys point to a weakening labor market. Although the US central bank cut interest rates last month, Fed Chairman Jerome Powell warned that further easing this year was not guaranteed, in part due to a lack of data.

Lower interest rates typically benefit gold, which offers no yield and is often considered a safe haven asset during periods of economic uncertainty. Platinum fell 2.8% to $1,569.65 and palladium fell 3.7% to $1,419.75.(alg)

Source: Reuters