The price of the precious metal soared more than 2% during Monday's intraday trading amid rising expectations of a Fed rate cut at the December meeting.
In addition, news of a potential US government reopening should support the US dollar. However, gold investors were reluctant to open up for longer profit-taking opportunities.
At 9 am, gold prices were at $4,129, up 0.34% since it opened early Tuesday in Asian trading.
Last weekend, the US Senate approved a measure to reopen the government with the support of several Democratic lawmakers.
US President Donald Trump welcomed the measure while he was confident that the government shutdown would end.
Senate Republican Leader John Thune expected a vote on the stopgap funding bill to be held in the coming hours. Meanwhile, US House Speaker Mike Johnson is reportedly seeking a vote on the same bill by Wednesday, according to The Wall Street Journal.
Meanwhile, US economic data last week showed signs of slowing, after the Challenger and University of Michigan (UoM) Consumer Sentiment reports recorded weak readings.
The development keeps the Federal Reserve's (Fed) interest rate cut forecast at its December meeting around 61%, down from 66.8% the previous week, according to the CME FedWatch Tool.
It comes after hawkish remarks by Fed Chairman Jerome Powell at a press conference after the policy decision on October 29.
