Gold rose to a new record level amid increasing chances of a U.S. government shutdown, casting a shadow over the Federal Reserve’s monetary policy path ahead of next month’s interest rate decision.

Gold prices briefly reached an all-time high of $3,839.52 per ounce on Tuesday.

Gold rose in the previous session after a meeting between top congressional leaders and President Donald Trump ended without an agreement on short-term funding. This raised concerns about a government shutdown, which could hinder the release of economic reports and deprive investors of crucial data needed to assess the U.S. economy.

Gold has risen more than 45% this year, recording consecutive gains due to central bank demand and the Federal Reserve’s resumption of interest rate cuts. Prices are on track to close the third consecutive quarter higher, with holdings in bullion-backed exchange-traded funds reaching their highest level since 2022.

U.S. Treasury bonds also rose on Monday, partly supported by fears of a government shutdown. According to Bloomberg, falling U.S. government bond yields tend to benefit precious metals, which do not pay interest, while a weaker dollar makes dollar-priced bullion cheaper for most buyers.