XAU/USD surged to an all-time high as the week opened on bets on lower US interest rates at the next meeting.
At 9.20am, gold was at $3,904, up 0.42% since it opened early Monday in Asian trading.
Bullion was also supported by continued concerns over the US government shutdown, amid lawmakers signaling some progress on a spending bill.
On the domestic front, the market is increasingly confident that the Federal Reserve (Fed) will cut interest rates again in October. Traders are seen pricing in a more than 99% chance of a 25 basis point cut later in October.
The dollar suffered losses on the sentiment, while Treasury yields also retreated.
The ongoing US government shutdown also largely kept demand for gold in check, although the country's risk-on sentiment largely shrugged off concerns about the impact of the shutdown.
