Gold price advances close to 2% on Monday and trades near record highs of $3,833 as market participants seeking safety bought the yellow metal amid fears of a government shutdown in the United States. XAU/USD trades at $3,827 at the time of writing.

Precious metal rallies to fresh record highs as Treasury yields plunge
The precious metal refreshed the all-time high of $3,791 hit on September 23, as the Greenback and US Treasury bond yields dive. Pessimism over an extension of government funding could trigger a federal shutdown and delay US economic reports like Friday's Nonfarm Payrolls report, which is compiled by the Bureau of Labor Statistics (BLS).

Bloomberg revealed that the BLS plans not to release economic data during a government shutdown as it would suspend operations.

Federal Reserve (Fed) officials are grabbing the headlines amid a scarce docket in the US. St. Louis Fed Alberto Musalem reiterated his hawkish stance, saying that inflation expectations "are somewhat high," but acknowledged that risks of the labor market weakness have increased.

New York Fed John Williams said that policy is restrictive, but in a position to put downward pressure on inflation, and that the resilient labor market is gradually softening.

Earlier, Cleveland Fed Beth Hammack reiterated her hawkish stance, saying that inflation is too high and the trend is in the wrong direction. She added that tariffs are a big part of the pause in the disinflation process.

Geopolitics boost Gold prices

Russia's defense ministry said that it had taken control of the village of Shandryholove in Ukraine's eastern Donetsk region.

Ahead of the docket will feature a flurry of Fed speakers, US ADP National Employment Change, the ISM Manufacturing PMI, Initial Jobless Claims and Nonfarm Payrolls for September.

Source: Fxstreet