Gold rose slightly as the market assessed the slowdown in the US economy, countering news of progress toward ending the government shutdown.
Gold bullion traded near $4,017 an ounce after ending last week virtually unchanged. The precious metal had risen on Friday after a U.S. consumer confidence gauge fell to near historic lows, amid the government shutdown and rising prices that have dampened the economic outlook.
The record government shutdown appears to be nearing its end after a number of moderate Democratic senators agreed to support a deal to reopen the government, according to people familiar with the talks.
Gold is still down compared to the beginning of the year.
Gold has fallen by about 8% since hitting a record high above $4,380 an ounce in mid-October, but it is still up by more than half since the start of the year.
However, most of the factors that fueled the strong rally, including increasing economic and geopolitical uncertainty, and continued purchases by central banks and individual investors, are still in place.
Spot gold rose 0.4% to $4,016.92 an ounce by 8:30 a.m. Singapore time. The Bloomberg Dollar Index also climbed 0.1%. Silver, platinum, and palladium also made gains.
