Gold prices strengthened in Asian trading on Tuesday, approaching a three-week high as investors continued to seek refuge in the precious metal despite a firmer U.S. dollar and improving risk appetite. Progress in resolving the U.S. government shutdown failed to dampen demand for gold, as lingering uncertainty around U.S. trade policy and interest rates kept investors cautious.

Spot gold gained 0.6% to $4,142.14 per ounce, while December gold futures advanced 0.7% to $4,148.92 per ounce by 23:57 ET (04:57 GMT).

Gold Retains Strength Despite Risk-On Sentiment

Even as markets welcomed signs that the longest government shutdown in U.S. history — now entering its 41st day — could soon end, investors continued to allocate capital to gold as a hedge against volatility.

The U.S. Senate voted late Monday to pass a spending bill that would reopen the government and restore funding, sending it to the House of Representatives for approval. The Republican-controlled House is widely expected to back the measure.

The precious metal has firmly reclaimed the $4,000 per ounce threshold, showing resilience against headwinds from the dollar’s recent gains. Analysts said the ongoing attraction to gold reflects broader economic unease despite a modest uptick in risk appetite.

Other precious metals mirrored the upward move, with spot platinum rising 0.7% to $1,587.48 per ounce and spot silver gaining 0.9% to $50.97 per ounce.

Trade Policy and Economic Uncertainty Support Bullion

According to ANZ analysts, the recent surge in gold prices has been driven by safe-haven demand amid heightened uncertainty over U.S. trade tariffs and potential legal challenges to the government’s trade policy.

They noted that the U.S. Supreme Court recently questioned the Trump administration’s use of emergency powers to implement tariffs under the 1977 International Emergency Economic Powers Act, which some argue may be unconstitutional.

Trump warned on Monday evening that overturning his tariffs could force the government to refund more than $2 trillion in duties.

“Whether or not the court rules Trump wrongly imposed tariffs by invoking the 1977 International Emergency Economic Powers Act, it is likely that there are other laws he can draw on if needed. In the meantime, the market is likely to face months of uncertainty with a ruling not expected before the end of the year,” ANZ analysts wrote in a note.

The protracted shutdown has delayed several key U.S. economic reports, adding to investor uncertainty about the health of the world’s largest economy. Meanwhile, traders have scaled back expectations for additional Federal Reserve rate cuts in December, helping gold maintain its safe-haven appeal even as broader markets stabilize.

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