09:18 AM EDT, 10/03/2025 (MT Newswires) -- Gold rose early on Friday, recovering from a day-prior drop as traders took profits following Wednesday's record performance, boosted by the dollar weakening amid a U.S. government shutdown.

Gold for December delivery was last seen up $18.50 to US$3,886.60 per ounce.

The rise comes as safe-haven demand continues to offer support amid the U.S. government shutdown and wars in Europe and the Middle East, while expectations the Federal Reserve will make further cuts to interest rates this year has also backed the precious metal's 45% rise over the past 12 months.

"Gold is consolidating following another record-breaking run, meeting resistance near USD 3,900. Support stems from expectations of additional Fed rate cuts amid the US government shutdown, alongside strong demand for gold-backed ETFs," Saxo Bank noted.

The dollar weakened early, bullish for commodities priced in the currency. The ICE dollar index was last seen down 0.12 points to 97.72. Treasury yields rose, with the U.S. two-year note last seen up 2.1 basis points to 3.566%, while the 10-year note was paying 4.103%, up 1.7 points.