Gold prices advanced in Asian trading on Tuesday, climbing to their highest levels in nearly three weeks as investors sought safety amid uncertainty surrounding U.S. trade policy, interest rates, and the lingering economic effects of the government shutdown. The recent strength of the dollar failed to dent demand for the precious metal, while signs of progress toward ending the shutdown did little to curb buying interest.

Spot gold rose 0.6% to $4,142.14 per ounce, while December gold futures gained 0.7% to $4,148.92 per ounce by 23:57 ET (04:57 GMT).

Gold Holds Strong Despite Rising Risk Appetite

Investors continued to favor gold even as risk sentiment improved slightly following progress in Washington, where lawmakers moved closer to resolving the longest U.S. government shutdown in history, now in its 41st day. The U.S. Senate approved a bill late Monday to restore federal funding, which will next be considered by the House of Representatives, where Republicans have signaled support.

The yellow metal has sharply rebounded above the key $4,000 per ounce mark, largely shrugging off pressure from a stronger U.S. currency. Analysts said the resilience of bullion reflects persistent caution about the broader economic and policy outlook.

Other precious metals followed gold higher: spot platinum added 0.7% to $1,587.48 per ounce, while spot silver climbed 0.9% to $50.97 per ounce.

Trade and Economic Jitters Boost Safe-Haven Demand

Analysts at ANZ said gold’s renewed strength was driven by safe-haven buying amid growing uncertainty around U.S. trade tariffs and the overall economic landscape. They pointed to recent developments in Washington, where the Supreme Court questioned the Trump administration’s use of an emergency act to enforce its tariff program — a move that could be ruled unconstitutional.

Trump warned on Monday evening that overturning his tariffs could cost the government more than $2 trillion in refunded duties.

“Whether or not the court rules Trump wrongly imposed tariffs by invoking the 1977 International Emergency Economic Powers Act, it is likely that there are other laws he can draw on if needed. In the meantime, the market is likely to face months of uncertainty with a ruling not expected before the end of the year,” ANZ analysts wrote in a note.

Economic data releases have been disrupted by the shutdown, leaving investors with limited visibility on the U.S. outlook. Traders have also been paring back expectations for another Federal Reserve rate cut in December, adding to the cautious tone in global markets.

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