Gold edged higher on Thursday but continued to trade horizontally overall as it remained relatively stable for several trading sessions after its selloff last month.
The metal could continue to find support in the ongoing geopolitical risks in the Middle East and Eastern Europe.
The lengthy US government shutdown could also continue to weigh on sentiment and drive demand for the safe-haven asset as its impact on the economy deepens.
However, gold could continue to see some downside risks as stronger-than-expected US economic data curbed Fed monetary policy easing expectations.
Private payrolls rose by 42,000 in October, beating forecasts of a 25,000 increase, while the ISM services PMI unexpectedly climbed to an eight-month high. The figures suggested that the US economy remains resilient despite the government shutdown, tempering expectations for additional Fed rate cuts next year. Still, market participants continue to price a 25 basis point rate cut in December, painting a potentially supportive scenario for the precious metal.
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