Analyst: The U.S. government shutdown and geopolitical tensions drive gold prices back above $4,100

Spot gold rose again in the Asian session's late trading, returning above $4,100. The ongoing U.S. government shutdown and geopolitical tensions have driven gold prices higher, while market expectations for further interest rate cuts by the Federal Reserve also support gold prices. Traders will closely monitor changes in trade conditions, as gold previously faced heavy selling due to easing trade tensions and a rebound in dollar demand. Russell Shor, a senior market analyst at Tradu.com, stated that this sell-off appears to be mainly a technical adjustment, as gold prices have been in an overbought state since September, prompting investors to take profits. Despite the pullback, gold prices have still risen by about 55% this year, and the long-term upward trend remains intact. Choosing to take profits ahead of Friday's CPI data release is also one of the reasons for the sell-off in gold. With the U.S. government shutdown halting the release of economic data, the upcoming U.S. September CPI inflation data on Friday is highly anticipated. If the data exceeds expectations, it could boost the dollar in the short term and put pressure on gold prices