Gold at record high as demand rises

Spot gold hit a record high of $3,799.41 an ounce, while gold futures for December hit a high of $3,828.40/oz

Gold prices hit a record high in Asian trade on Monday as safe haven demand was boosted by concerns over a potential U.S. government shutdown this week, while bets on lower interest rates also helped.

Spot gold hit a record high of $3,799.41 an ounce, while gold futures for December hit a high of $3,828.40/oz.

Broader metal prices also logged strong gains, advancing against a weaker dollar after in-line inflation data released last week kept markets optimistic towards more interest rate cuts by the U.S. central bank.

Spot silver soared more than 2% to a more-than 14-year high of $47.0315/oz, while spot platinum added 3% to an over 12-year high of $1,619.78/oz.

Gold and precious metals were buoyed by increased safe haven demand, as markets braced for a potential U.S. government shutdown this week amid middling bipartisan attempts to push through a funding bill.

Funding for U.S. federal operations is set to expire at midnight on Sept 30, with Congress having no replacement or extension funding in place.

Bipartisan negotiations over a funding bill remained ongoing. Republicans were seen pushing for a stop-gap funding bill till November, while Democrats were demanding that Congress reverse recent cuts to healthcare and Medicaid spending before any more funding bills can be approved.

A government shutdown could delay the release of nonfarm payrolls data due later this week, and also stands to disrupt economic activity if left unresolved for a prolonged period.

The U.S. government had last partially shut down for a period of 35 days in late-2018 to early-2019. The Congressional Budget Office think tank estimated that the shutdown had reduced gross domestic product by around $11 billion.