Gold prices extended their winning streak to a fourth consecutive day, reaching fresh all-time highs as traders brace for a potential US government shutdown that could bolster demand for safe-haven assets.

Gold climbed to $3,875.53 per ounce, surpassing Tuesday's record high, with investors closely monitoring the political deadlock in Washington. Should Democrats and Republicans fail to reach an agreement on federal government funding before midnight, it would trigger the first government shutdown in nearly seven years, potentially delaying the release of crucial economic data including Friday's nonfarm payrolls report.

Year-to-date, gold has surged more than 47%, positioning itself for the largest annual gain since 1979. The rally has been supported by central bank purchases and increased holdings in gold ETFs following the Federal Reserve's return to interest rate cuts. Data compiled shows that September witnessed the highest monthly ETF inflows in three years.

Boston Fed President Susan Collins stated Tuesday that further rate cuts this year may be appropriate given labor market softness, though officials must remain vigilant about persistent inflation risks. Meanwhile, Fed Vice Chair Philip Jefferson cautioned that the central bank faces the dual challenge of cooling labor markets and rising inflationary pressures, complicating the outlook.

As of publication, spot gold was trading 0.3% higher at $3,872.21 per ounce, following Tuesday's 0.7% gain. The Bloomberg Dollar Spot Index remained flat. Silver advanced 1.7% to $47.4317 per ounce after declining 0.6% in the previous session. Both platinum and palladium posted gains.