Gold rose to a new record level on Tuesday and is set to register its best monthly performance in 14 years, as concerns over a potential 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 per ounce by 0123 GMT.

The precious metal gained 11.4 percent in September, its best month since August 2011.

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

Gold prices have risen more than 45% this year, hitting consecutive highs thanks to central bank demand and the Federal Reserve’s resumption of interest rate cuts. The ounce is achieving its third consecutive quarterly gain, with holdings in exchange-traded funds backed by bullion reaching their highest levels since 2022.

U.S. President Donald Trump apparently made no progress during 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 U.S. 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 during political and financial uncertainty, thrives in a low interest rate environment.

Other precious metals, silver and platinum, took a breather on Tuesday after reaching multi-year highs in the previous session. Both metals have risen about 62% and 76% respectively since the start of the year, supported by ongoing market tightness as multi-year supply deficits peak.

At the end of September, silver settled at $46.94 per ounce after rising 2.4% on Monday, reinforcing last week’s gains that pushed prices above $45 per ounce for the first time in 14 years. Platinum settled at $1,604.27 per ounce after reaching its highest level since 2013 in the previous session.