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Gold price (XAU/USD) trades in positive territory near $3,990 during the early Asian session on Friday. The precious metal edges higher amid a weaker US Dollar (USD) and a renewal of safe-haven demand. Traders await the release of the flash U-Mich Consumer Sentiment survey later on Friday.

Concerns over a prolonged US government shutdown and uncertainty over the legality of tariffs could boost the safe-haven flows, supporting the Gold price. The US government shutdown has entered its sixth week, with an end to the stalemate appearing nowhere in sight. The Senate is not currently set to vote on a House-passed measure to reopen the government on Thursday, after it failed to advance for the 14th time on Tuesday.

With the US government shutdown and skepticism from US Supreme Court justices on the legality of US President Donald Trump's sweeping tariffs, "we're seeing a revival of the haven bid," said Peter Grant, vice president and senior metals strategist at Zaner Metals.

Additionally, the Challenger report showed that companies slashed over 150,000 jobs in October, marking the biggest reduction for the month in more than 20 years. The announcement prompted the Federal Reserve (Fed) to lower interest rates at their December meeting and lift the yellow metal. Lower interest rates could reduce the opportunity cost of holding Gold, supporting the non-yielding precious metal.

Traders will take more cues from the Fedspeak on Friday. Fed’s John Williams, Philip Jefferson and Stephen Miran are set to speak. Any hawkish remarks from Fed policymakers could lift the US Dollar (USD) and undermine the USD-denominated commodity price in the near term.

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