Washington: Gold prices edged higher on Thursday as a weaker US dollar and growing concerns over the prolonged US government shutdown pushed investors toward the safe haven metal.

Spot gold rose about 0.1 percent to trade near 3,985 dollars an ounce in early trading, while US gold futures reached around 3,995 dollars. The decline of the US dollar by nearly 0.2 percent made gold cheaper for buyers using other currencies, supporting its value in global markets.

The continuing government shutdown in the United States, now one of the longest in the country’s history, has fueled uncertainty in financial markets. Many investors are turning to gold as a safer option while the political stalemate delays government operations and key economic reports.

However, stronger than expected US labor data has limited gold’s gains. Private employers added about 42,000 jobs in October, easing expectations that the Federal Reserve will cut interest rates further this year. Markets now see around a 63 percent chance of a rate cut in December, down from more than 90 percent just a week earlier.

Other precious metals also showed small gains. Silver rose by 0.5 percent, platinum increased slightly by 0.1 percent, and palladium gained 0.5 percent.

Gold prices are still around 9 percent lower than their record high of 4,381 dollars per ounce reached on October 20. Analysts say the market remains volatile as it reacts to both economic data and ongoing political issues in the United States.

Experts believe gold could continue to find support as long as uncertainty persists. “The weaker dollar and extended shutdown are encouraging investors to hold gold as protection against risk,” said Jonathan Schiessl, a market analyst.

In India, gold prices also remained strong as global trends influenced local demand. With the festival season and wedding purchases underway, traders expect steady interest in the coming weeks, though high prices may limit buying in some regions.

Market watchers are now looking ahead to upcoming US employment and inflation data for clearer signals on the Federal Reserve’s next move. Until then, gold is likely to stay firm, supported by safe haven buying amid global uncertainty.