Gold prices broke past $3,800 an ounce for the first time Monday to hit a record high, as expectations of a U.S. rate cut and concerns about a potential government shutdown fueled safe-haven demand amid heightened geopolitical uncertainty.

Spot gold jumped 1.5% to $3,815.49 per ounce by 1052 GMT, after hitting $3,819.59 earlier in the session.

U.S. gold futures for December delivery rose 1% to $3,845.70.

The U.S. dollar index fell 0.2%, making greenback-priced bullion less expensive for overseas buyers.

"Some people describe gold as the sum of all fears, whether they're economic or political and it's quite clear that at the moment we've got issues on both sides," said independent analyst Ross Norman.

U.S. President Donald Trump will meet with the top Democratic and Republican leaders in Congress later on Monday to discuss extending government funding. Without a deal, a shutdown would begin from Wednesday.

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Meanwhile, Russia launched hundreds of drones and missiles at Kyiv and other parts of Ukraine early on Sunday, in one of the most sustained attacks on the capital since the full-scale war began.

The U.S. Personal Consumption Expenditures Price Index on Friday matched expectations, reinforcing bets on further Federal Reserve rate cuts, in October and December meetings..

"With the Fed set to cut further rates over the next six months, I think there should be more upside for the yellow metal, targeting a level of $3,900/oz," said UBS analyst Giovanni Staunovo.

Gold, a safe-haven asset that tends to perform well in low-interest-rate environments, has climbed 45% this year, supported by strong central bank buying, the rise of gold ETFs, a weak dollar, and retail investor demand. Many brokerages have turned bullish on the rally in gold prices.

Elsewhere, spot silver rose 2% to $46.90 per ounce, hitting a more than 14-year high, while platinum gained 0.9% to $1,583, a 12-year high, and palladium steadied at $1,269.

"(Silver and platinum-group metals) are responding to two primary things — increased industrial activity on rate cuts and higher levels of inventory holding as nations seek to ensure they have adequate availability in a world of supply chain uncertainty," Norman said.