Gold prices climbed to a record high above $3,860 an ounce on Tuesday, supported by demand for safe-haven assets as U.S. lawmakers failed to agree on a funding deal ahead of a midnight deadline.
Spot gold touched $3,871.28 before easing to $3,843.18 by late trade, up 0.26% on the day. The metal has gained 10.54% in September, its strongest monthly rise since 2011, and is up 44.46% compared to the same period last year.
Talks between President Donald Trump and congressional leaders on Monday ended without agreement on a temporary measure to extend government funding.
Without a deal, federal agencies will run out of money when current funding expires, forcing many offices to close from Wednesday and delaying the release of key economic data, including the September jobs report.
The impasse comes as new U.S. tariffs on heavy trucks, patented medicines and other goods are due to take effect on Wednesday. Recent economic data has also added to expectations that the Federal Reserve could cut interest rates at its two remaining meetings this year.
Gold has gained more than 16% this quarter, buoyed by weaker bond yields, a softer dollar and concerns over economic and political risks.
