Gold broke through the USD3,900 per ounce level for the first time in early Asian trade on Monday, driven by safe-haven demand after the U.S. government shutdown and rising bets on more Federal Reserve rate cuts.

Spot gold rose 0.6 percent to USD3,910.09 per ounce late Sunday, while U.S. gold futures for December delivery climbed 0.7 percent to USD3,935, according to Reuters. Mounting political uncertainty in Washington, coupled with expectations that the Fed will ease monetary policy sooner, are said to be fueling the rally.

In the Philippines, retail prices of gold tracked the global surge. Based on Bangko Sentral ng Pilipinas (BSP) reference rates, a gram of 24-karat gold was quoted around P3,400 to P3,500, up from the previous week’s range of about P3,200 to P3,300. Local jewelers and bullion traders reported stronger demand over the weekend as consumers and investors sought to hedge against peso volatility and global risks.

Market watchers expect further upside if the Fed signals more aggressive easing in the coming weeks, although some warned that profit-taking could trigger sharp pullbacks. For Filipino consumers, higher gold prices could make jewelry more expensive ahead of the holiday season, while investors in bullion and gold-backed products may benefit from the rally.