Breaking: Gold edges higher to record high above $3,900 as US shutdown continues

• Gold Price extends its upside near $3,905 in Monday's early Asian session. 
• Concerns over a prolonged US government shutdown and Fed rate cuts bets underpin the Gold price. 
• Two more Fed rate cuts are expected this year.

Gold Price (XAU/USD ) attracts some buyers around $3,905 during the early Asian session on Monday. Uncertainty surrounding a US government shutdown and expectations of the Federal Reserve (Fed) interest rate cuts support the precious metal. 

US Senators failed to pass spending proposals to reopen the federal government for a fourth time, extending the ongoing shutdown into a new week. Uncertainty surrounding a US government shutdown and delayed key data releases boost the safe-haven flows, benefiting the yellow metal. 

"I think the longer the government stays shut down, that's going to be a steady bullish element for the gold market. If they happen to have a surprise weekend agreement to open the government back up, that would probably be a bearish element," said Jim Wyckoff, senior analyst at Kitco Metals.

Furthermore, growing speculations about the US Fed rate cut in the upcoming meeting lift the precious metal. According to LSEG calculations, traders see a 25 basis points (bps) cut at the Fed's October meeting as almost certain. The rate futures market has priced in about 47 bps of rate declines for the remainder of the year or just under two reductions. 

Lower interest rates could reduce the opportunity cost of holding Gold, supporting the non-yielding precious metal. However, some profit-taking cannot be ruled out in the near term after the Gold extends the rally for the eighth consecutive week.