XAU/USD edged lower at the end of the week after hitting a fresh high of $3,895 during intraday trading on Thursday, hovering over 1% after testing a record high in the near term.
At 9.40am, gold was at $3,857, having held steady since opening early Friday in Asian trading.
The current market sentiment is still assessing the US government shutdown situation, which has actually triggered a safe-haven attraction, amid optimism about a Fed rate cut.
Lower interest rates will keep Treasury yields weak, which could propel gold prices higher.
Meanwhile, disruptions in government funding are set to delay key economic data releases. The weekly Initial Jobless Claims and August Factory Orders, which were scheduled for this week, are delayed.
The Bureau of Labor Statistics (BLS) confirmed on Monday that it will suspend operations during the government shutdown, including Friday's Non-Farm Payrolls (NFP) report, which is unlikely to be presented.
