Gold prices extended gains on Tuesday, rising further amid renewed caution over US trade policy and the Federal Reserve’s next move.
The dollar’s recent strength did little to dampen demand for the metal, which continued its rebound from last week’s lows. Spot gold traded at $4,142.57 per ounce by 09:25 GMT.
The metal’s sharp rally came even as risk appetite improved following progress in Washington toward ending the government shutdown. The US Senate late Monday approved a funding bill to reopen federal agencies after 41 days of closure. The legislation now heads to the House of Representatives, where passage is widely expected.
Despite the improved political backdrop, traders remain wary of the shutdown’s lingering economic impact, particularly as it delayed the release of key US data. The uncertainty has helped underpin safe-haven demand for gold.
At the same time, mixed signals from the Federal Reserve continue to cloud the outlook for interest rates. Markets have scaled back expectations of a December rate cut, but weak private job data last week has kept the possibility alive.
Gold has now climbed firmly back above $4,000, showing renewed momentum despite a firmer dollar and slightly brighter market sentiment.