PRECIOUS-Gold rises as US shutdown, tariff uncertainty lift safe-haven demand

By Noel John and Pablo Sinha

Nov 6 (Reuters) - Gold prices rose on Thursday, hovering just shy of $4,000 per ounce, buoyed by a weaker dollar and a resurgence of safe-haven demand on concerns over a prolonged U.S. government shutdown and uncertainty over the legality of tariffs.

Spot gold XAU= was up 0.4% at $3,998.65 per ounce by 09:43 a.m. ET (1207 GMT). U.S. gold futures GCcv1 for December delivery gained 0.3% to $4,005.40 per ounce.

The dollar .DXY fell 0.3% after hitting a four-month high in the previous session, making gold cheaper for other currency holders. Benchmark U.S. 10-year Treasury yields US10YT=RR were down 1.3%. USD/

With the U.S. government shutdown and skepticism from U.S. Supreme Court justices on the legality of U.S. President Donald Trump's sweeping tariffs, "we're seeing a revival of the haven bid," said Peter Grant, vice president and senior metals strategist at Zaner Metals.

"(Gold) is on track for a fairly decent close to the year ... I’d say a year-end target in the $4,300 to $4,400/oz range seems reasonable."

Gold is considered a hedge during times of uncertainty. The non-yielding asset also benefits in low-interest rate environments.

A slew of Fed officials scheduled to speak later in the day may offer clues on the monetary policy outlook.

U.S. private employers added 42,000 jobs in October, above Reuters' forecast of a 28,000 gain, the ADP report showed on Wednesday.

"It would surprise us were gold to stay rangebound around $4,000/oz as speculative capital exits, with central bank buying remaining the primary positive tailwind going forward," SP Angel said in a note.

Elsewhere, spot silver XAG= rose 0.4% to $48.24 per ounce, platinum XPT= was down 0.2% at $1,568.26, and palladium XPD= fell 1.3% to $1,401.14.