Gold surged to a new record level during early Tuesday trading and is set to register its best monthly performance in 14 years, as concerns over a possible U.S. government shutdown and increasing expectations of further interest rate cuts boosted demand for the metal as a safe haven.

Spot gold rose about 0.2 percent to $3,842.76 an ounce by 0123 GMT.

The precious metal has gained 11.4 percent so far in September, heading for its best month since August 2011.

U.S. gold futures for December delivery rose 0.4 percent to $3,872.

U.S. President Donald Trump appeared to make no progress in his meeting with Democrats to avoid a government shutdown that could disrupt a wide range of services.

Recent economic data have increased expectations that the Federal Reserve will make further interest rate cuts this year.

Traders see about an 89 percent chance of a 25 basis point rate cut at the Fed’s next meeting, according to the CME Group’s FedWatch tool.

Gold, often used as a safe store of value in times of political and financial uncertainty, thrives in a low interest rate environment.

Investors are awaiting U.S. labor market data on Friday for more clues on the economy’s health.

Other precious metals saw silver steady at $46.95 an ounce in spot trading, platinum down 0.2 percent to $1,597.58, and palladium down 0.8 percent to $1,259.02.