Source: Sharecast
The precious metal, which has now put on 44% over the last year, has breached $3,600 per troy ounce for the first time, less than a week after it pushed past a previous record high of $3,500.
As at 1130 BST gold was trading at $3,618 a troy ounce.
The recent flight to safety has been fuelled by ongoing political and economic risks, many of which are centred on the US.
In particular, Donald Trump’s ongoing clashes with the Federal Reserve - including attempting to remove governor Lisa Cook - have raised concerns over the central bank’s independence.
The Fed meets to discuss interest rates next week and market watchers are increasingly pencilling in a cut of between 25 and 50 basis points, despite the likely impact of tariffs on inflation.
Further fuelling expectations for a rate cut was Friday's Department of Labor report, which saw non-farm payrolls grow by just 22,000 in August, well below forecasts.
Gold benefits from both heightened economic and political risks - as it is viewed as the ultimate safe-haven asset - and lower interest rates, as bond holders tend to diversify when the cost of borrowing eases.
Stephen Innes, managing partner at SPI Asset Management, said: "Gold has once again stormed higher, leaving traders squinting at their screens as if the tape were glitching.
"But this is no bad tick - it’s the logical crescendo of a market where rate cut wagers, political meddling and creeping stagflation fears are converging into a perfect tailwind for bullion.
"What we’re watching is not just a rally, but a repricing of trust. At $3,600, it’s no longer just an inflation hedge, it’s a referendum on the system."
