Khaberni - Gold climbed to a new record high on Tuesday and is preparing to record its best monthly performance in 14 years, as fears of a potential U.S. government shutdown and increasing expectations of further interest rate cuts have boosted demand for the metal as a safe haven.
Gold rose in spot transactions by about 0.2% to reach a level of $3869.75 per ounce.
The precious metal has increased by 11.4% so far in September and is on track to record its best month since August 2011.
U.S. futures contracts for gold delivery in December rose by 0.4% to $3872.
Apparently, U.S. President Donald Trump made no progress during his meeting with the Democrats to avoid a government shutdown that could disrupt a wide range of services.
Recent economic data have increased expectations that the Federal Reserve (the U.S. central bank) will make further interest rate cuts this year.
Traders see about an 89% chance of a 25-basis-point interest rate cut at the next Federal Reserve meeting.
Investors are awaiting U.S. labor market data on Friday for more indicators on the health of the economy.
As for other precious metals, silver stabilized in spot transactions at $46.95 per ounce, platinum fell 0.2% to $1597.58, and palladium decreased by 0.8% to $1259.02.
