Gold prices rose on Thursday to a more than three-week high on expectations the US government reopening would increase debt levels, while publication of delayed US economic data could provide more clarity on Federal Reserve interest rate policy, reports Reuters.
Spot gold gained 0.7 per cent to $4,229.19 per ounce, as of 1147 GMT, its highest since October 21. US gold futures for December delivery rose 0.5 per cent to $4,234.10 per ounce.
"Precious metals are rallying alongside equities as traders continue to front run dovishness and the resolution of the US government shutdown will not significantly alter the trajectory, as it is expected to contribute to an increase in debt levels," said Hugo Pascal, a precious metals trader at InProved.
"Physical demand for silver and gold remains robust and recent US economic indicators signal weakening growth, a favourable combination for metals prices."
US President Donald Trump on Wednesday signed legislation ending a 43-day government shutdown, the longest in US history, which delayed critical economic data such as jobs and inflation reports.
The agreement funds federal operations through January 30, but the government is projected to add $1.8 trillion annually to its $38 trillion debt burden.
Fed Chair Jerome Powell has cautioned against further easing this year, partly due to a lack of data, while cutting the interest rate by a quarter-point last month. Economists said the US Labor Department should prioritise November employment and inflation data to ensure Fed officials have up-to-date information at their December policy meeting.
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