Gold advanced to a new record on Tuesday as it rose by 0.9 percent to $3,867.25 an ounce as political uncertainty in Washington increased concerns about the Federal Reserve’s policy direction ahead of its next interest rate decision.
The price eclipsed Monday’s all-time high when bullion closed 2 percent higher.
The latest gains followed an inconclusive meeting between President Donald Trump and congressional leaders on government funding.
The stalemate has raised the prospect of a shutdown that could delay the release of key economic data, limiting investor visibility on the US economy.
Nicky Shiels, head of metals strategy at MKS PAMP SA, said gold is reacting to both subdued jobs growth expectations and the potential for a shutdown.
She noted that previous shutdown negotiations had little impact, but current conditions are different due to the ongoing bull market rally.
Gold has gained 47 percent in 2025 and is on course for its strongest annual performance since 1979, driven by central bank purchases and expectations of further interest rate cuts by the Federal Reserve.
Analysts at Goldman Sachs Group Inc. and Deutsche Bank AG forecast that the rally will extend.
Safe-haven flows also supported US Treasuries, which advanced as yields declined, while the dollar weakened. Lower yields reduce the opportunity cost of holding gold, and a weaker greenback increases demand for dollar-denominated bullion.
In the mining sector, Newmont Corp. confirmed the planned retirement of Chief Executive Officer Tom Palmer effective December 31, while Barrick Mining Corp. announced the unexpected departure of CEO Mark Bristow. Both companies are the world’s largest gold producers.
As of 12:22 p.m. in Singapore, spot gold traded at $3,864.69 an ounce. Silver and palladium gained, while platinum edged lower.