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

Spot gold rose about 0.2 percent to $3842.76 per ounce by 0123 GMT.

The precious metal has gained 11.4 percent so far in September and is on track for its best month since August 2011.

U.S. gold futures for December delivery climbed 0.4 percent to $3872.

Other precious metals saw silver steady at $46.95 per ounce in spot trading, platinum fell 0.2 percent to $1597.58, and palladium dropped 0.8 percent to $1259.02.