Numerous analysts previously said they anticipated a temporary correction lower in gold when the deficit-ceiling impasse ended.

FORBES: Gold Underpinned By Downgrade Worries, Economy, European Debt Issues, Central-Bank Buying

Congress and the White House agreed to the sequestration cuts as part of the 2011 debt ceiling deal that ended a showdown over whether to increase the federal government's borrowing limit to meet its obligations.

CNN: STORY HIGHLIGHTS

In the 2011 debt ceiling deal that ended a showdown over whether to increase the federal government's borrowing limit to meet its obligations, Congress and the White House agreed to include the automatic spending cuts of sequestration as motivation to pass a comprehensive deficit-reduction plan.

CNN: Obama calls for short-term fix to imminent spending cuts