Bullion traded around $3,970 over the weekend as the US dollar strengthened, as market players assessed the news of a ceasefire between Israel and Hamas that revived geopolitical sentiment.
At 9.40 am, gold was at $3,979, up 0.06% since it opened early Friday in Asian trading.
However, the Russia-Ukraine war is still ongoing despite ongoing negotiations by the White House.
The precious yellow metal was pressured by a sharp strengthening of the US dollar, with the US Dollar Index (DXY) which tracks the currency's performance rising 0.62% to near 100 points.
For now, gold is poised to extend its rally as the US government shutdown enters its ninth day and the latest Fed minutes show that policymakers are in agreement to support a weakening labor market.
Fed Governor Michael Bar in his statement said he was less confident about the tariff spillover announcement on services inflation. He added that uncertainty about inflation and the job market requires a cautious approach to additional rate cuts.
Minneapolis Fed, Neel Kashkari also agreed with his counterpart's statement.
