Gold prices hit a record high in Asian trade on Monday as 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 $3,812.0 an ounce, while gold futures for December hit a peak of $3,839.05/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 Federal Reserve. Silver and platinum both surged to over decade highs. 

US govt shutdown looms; Trump bipartisan talks in focus 

Gold and precious metals were buoyed by increased 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. 

Congressional leaders from both parties are set to meet President Donald Trump on Monday for mediation talks. 

A government shutdown could delay the release of key 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 about $11 billion.

Silver, platinum crest decade highs; rate cut bets help

Metal prices rose across the board on Monday, with silver and platinum outpacing gold and soaring to more than 10-year highs apiece. 

Spot silver surged over 2% to a more-than 14-year high of $47.1765/oz, while spot platinum rallied 3.2% to an over 12-year high of $1,626.06/oz. 

Metal markets were also aided by a weaker dollar, amid increasing conviction that the Federal Reserve will cut interest rates in October and potentially December. 

In-line PCE price index data for August, released on Friday, helped further this notion, even as core PCE data showed inflation remaining well above the Fed’s 2% annual target. PCE data is the Fed’s preferred inflation gauge. 

Markets are pricing in a 91.9% chance the Fed will cut rates by 25 basis points in October, and a 64.2% chance for an additional 25 bps cut in December, CME Fedwatch showed. 

Expectations of more rate cuts boosted metal prices. Among industrial metals, benchmark copper futures on the London Metal Exchange rose 0.6% to $10,276.45 a ton, while COMEX copper futures rose 1.3% to $4.8065 a pound.