The precious metal continued its positive trend and strengthened above the $3,300 level as market participants awaited the US tax bill and escalating tensions in the Middle East.
At 9.20 am, gold prices were at $3,335.44, up 0.61% since it opened in early trading on Thursday in the Asian session.
The market mood was still bleak as US stock indexes recorded losses and US Treasury yields rose.
They are waiting for the approval of the tax cut bill by President Donald Trump, which the Congressional Budget Office (CBO) said will add nearly $3.8 trillion to the national debt.
The budget support will provide support for the high US stock market, but the reaction of the US dollar is still difficult to predict as news of the downgrade of US government debt by Moody's has triggered prolonged selling activity below 100 points.
Additionally, rising tensions in the Middle East are still supporting gold prices even as the US-China trade dispute eases to open up more room for negotiations.
This week, investors will be looking ahead to Fed officials' speeches, Flash PMI, housing data and Initial Jobless Claims.
