Bullion rose to a high above $3,970 earlier in the week amid the US government shutdown and market participants expecting the Fed to set an interest rate cut at the upcoming FOMC meeting on October 29.
At 9.15am, gold was at $3,962, up since it opened early Tuesday in Asian trading.
Political uncertainty in the US maintained gold's appeal, as the government reopening sentiment has yet to show signs of recovery as US House Republicans remain reluctant to negotiate.
In addition, Paris and Tokyo also heated up global political conflict when new French Prime Minister Sebastian Lecornu resigned after less than a month in office, while Japan's LPD elected Sanae Takaichi, its first female candidate for Party President this weekend.
This pushed gold prices higher, although the US dollar recovered slightly as reflected in the US Dollar Index (DXY).
Regarding the geopolitical conflict, an Israeli delegation has arrived in Egypt to negotiate a Gaza hostage and ceasefire agreement.
