Amid mounting concerns over a potential US government shutdown, the yellow metal is gaining strength. Against this backdrop, bullion surged to a fresh all-time high during Asian trading hours on Monday, September 29, as demand for safe-haven assets spiked. The prospect of Federal Reserve rate cuts provided additional support.

The price of spot gold surged to a record high of $3,799.41 per ounce, while December futures peaked at $3,828.40. Most other precious metals joined the rally, buoyed by a weaker dollar after inflation data matched expectations, keeping hopes alive for further Fed easing.

Spot silver soared by more than 2% to $47.0315 per ounce, reaching its highest point in 14 years. Meanwhile, platinum climbed by 3% to $1,619.78 per ounce, a level not seen in more than 12 years.

The surge in precious metals comes as investors pile into safe-haven assets, bracing for a possible US government shutdown this week amid bipartisan wrangling over a funding bill. Federal operations in Washington are set to run out of money at midnight on September 30, with Congress yet to agree on an extension.

Talks between Republicans and Democrats are ongoing. Republicans are pushing for temporary funding through November, while Democrats are demanding that Congress reverse recent cuts to healthcare and the Medicaid program. The parties are expected to reach a deal in the coming days.

A shutdown could delay the release of critical US nonfarm payrolls data due this week and risk slowing economic activity if the deadlock persists. The last partial shutdown, which stretched 35 days from late 2018 to early 2019, shaved nearly $11 billion off GDP, according to the Congressional Budget Office.