“There is a general ‘risk-on’ attitude in the market place Thursday morning as there is some hope that Democrats and Republicans in the U.S. Congress can very soon agree on a budget/debt ceiling plan that would reopen the partially closed government and raise its borrowing limit,” said Kitco analysts in a note.
The standoff thaw is likely to pressure gold and other assets viewed as safety plays. Top House Republicans are expected to meet with President Barack Obama on Thursday.
On the other hand, the Labor Department said initial weekly jobless claims jumped to a six-month high of 374,000, worse than forecasts for 312,000. The jump was attributed to ongoing application-processing snafus in California and government shutdown-related layoffs. Gold turned slightly positive after the claims data, but then dipped back into negative territory.
