XAU/USD continued its positive momentum nearing $4,200 as markets assessed Fed Jerome Powell's speech, along with support from US-China tensions amid political uncertainty.
At 9.15am, gold was at $4,180, up 0.88% since it opened early Wednesday in Asian trading.
Fed Chairman Jerome Powell was a little neutral during his remarks at a Q&A session in Philadelphia, noting that the economy is on a stronger-than-expected trajectory ahead of the next rate-setting meeting.
Meanwhile, expectations for a rate cut remain high with a 96% chance of a 25 basis point cut.
Bullion continues to rally amid geopolitical uncertainty, robust central bank buying and the US government shutdown, which is currently in its fourteenth consecutive day.
The escalating trade war pushed XAU/USD past $4,100 after US President Donald Trump threatened to impose an additional 100% tariff on Chinese goods in retaliation.
On Friday, Beijing announced controls on rare earth exports and port fees for US ships while exempting Chinese-made ships owned by US companies from paying the duties.
US small business sentiment declined in September as owners grew more pessimistic about business conditions over the next six months, according to data from the National Federation of Independent Business (NFIB).
