XAU/USD rallies as US shutdown resolution boosts gold safe-haven appeal

Gold prices have surged during Monday's trading session as the approaching end to the US government shutdown creates a mixed market environment. While risk assets initially rallied on shutdown resolution hopes, gold has paradoxically strengthened, suggesting traders are positioning for potential market volatility ahead. The precious metal's resilience reflects ongoing concerns about US fiscal stability and debt ceiling implications, even as immediate shutdown risks fade. Technical indicators show gold breaking above key resistance levels, with momentum building for further upside. The dollar's mixed performance amid political uncertainty has provided additional support for gold prices. Traders are closely watching how the shutdown resolution unfolds and its impact on broader market sentiment. The contrarian gold strength signals underlying market nervousness despite the risk-on moves in equities, suggesting investors are hedging against potential volatility once the immediate relief rally subsides.