Gold is drawing renewed investor demand as political brinkmanship in Washington and disputes over the Federal Reserve’s independence heighten uncertainty over the US policy outlook, Bloomberg reports.

Congress faces a Tuesday deadline to avoid a government shutdown, with President Donald Trump set to meet congressional leaders in a final push for a temporary funding deal. A closure would postpone the release of September’s jobs report, depriving policymakers of key evidence on labour market conditions ahead of the Fed’s October meeting. Economists expect the data to confirm slower hiring, which could strengthen calls for further rate cuts.

The central bank itself has come under unusual pressure, after lawyers for Fed Governor Lisa Cook petitioned the Supreme Court to block Trump’s effort to remove her. Analysts warn that political interference could erode confidence in the Fed’s independence. Barclays, the British multinational bank and a major player in global financial markets, said these risks justify a “Fed-related premium” in bullion, calling gold a valuable hedge for investors.

Against this backdrop, spot prices hovered around $3,773 an ounce in Asian trading on Monday, just below last week’s record. Bullion has risen 44% this year, driven by central-bank buying and inflows into exchange-traded funds, which are now at their highest since 2022. The rally has left the metal on track for a third straight quarterly gain, with banks including Goldman Sachs and Deutsche Bank predicting further advances.

Silver has also surged, topping $45 an ounce last week for the first time in 14 years. Persistent tightness in London’s physical market has lifted borrowing costs for the metal above five percent. On Monday, silver extended gains to $46.47, while platinum and palladium also edged higher.