DELAYED U.S. ECONOMIC DATA FUELS EXPECTATIONS OF LOOSER FED POLICY
NEW YORK — November 11 , 2025. Gold prices surged on Friday as traders bet that delayed U.S. economic data releases could strengthen the case for the Federal Reserve to begin cutting interest rates earlier than expected.
Spot gold rose 1.7% to $2,486 per ounce, its highest level in nearly two weeks, while U.S. gold futures climbed above $2,500, as markets reacted to the latest signs of economic slowdown and mounting political pressure in Washington.
The Commerce Department postponed several key reports — including retail sales and inflation metrics — due to disruptions from the prolonged government shutdown, leaving investors with little guidance on near-term economic momentum.
Analysts said the data gap has heightened speculation that the Fed may opt for a more dovish stance at its December meeting. “When visibility declines, markets price in caution — and in this case, that means lower rates,” said Sarah Mitchell, senior metals strategist at Barclays.
Lower interest rates typically boost gold prices by weakening the U.S. dollar and reducing the opportunity cost of holding non-yielding assets. The greenback slipped 0.3% on Friday, while Treasury yields edged lower across the curve.
The rally also reflects growing unease about the political and fiscal outlook in Washington, where the 40-day government shutdown has delayed spending plans and strained confidence in the U.S. economy. Traders are increasingly viewing gold as a hedge against uncertainty and potential volatility in bond markets.
“Gold is reclaiming its role as the ultimate insurance policy,” said Vikram Nair, chief market analyst at ICBC Standard Bank. “Until the data flow normalizes, safe-haven demand will remain elevated.”
Global markets reacted modestly, with Asian equities edging higher and crude oil stabilizing near $76 per barrel. Bitcoin, often seen as an alternative store of value, also rose 1.2% to $66,300.
Analysts caution that once economic data resumes, stronger-than-expected readings could reverse part of gold’s rally. For now, however, investors are betting that uncertainty — and the Fed’s eventual response — will keep the metal shining.
