New york: Gold prices rose to a new record high on Wednesday, supported by increased investor appetite for safe-haven assets following the official start of the U.S government shutdown. This surge in demand for gold has been attributed to investors seeking stability amid uncertainties in the economic and political landscape.

According to Yemen News Agency, the price rise was further influenced by weak labor market data, which reinforced expectations of a Federal Reserve interest rate cut. The anticipation of lower interest rates tends to make gold more appealing as it reduces the opportunity cost of holding non-yielding bullion.

Spot gold rose 0.1% to $3,861.99 per ounce after hitting an all-time high of $3,875.32. Meanwhile, U.S gold futures for December delivery saw a more significant increase, rising 0.7% to $3,901.40, indicating strong future demand.

The U.S dollar index remained near a one-week low, making dollar-denominated gold more attractive to buyers outside the United States. Additionally, US stock futures declined on Wall Street, contributing to the increased allure of gold as a safer investment alternative.