PRECIOUS-Gold surges past $3,800/oz to record high on rate cut bets, geopolitical concerns

By Anmol Choubey

Sept 29 (Reuters) - Gold prices broke past $3,800 an ounce for the first time on Monday to hit a record high, as expectations of more U.S. rate cuts and concerns about a potential government shutdown fueled safe-haven demand amid heightened geopolitical uncertainty.

Spot gold XAU= was up 1.5% to $3,817.16 per ounce at 1227 GMT, after hitting $3,831.19 earlier in the session.

U.S. gold futures GCcv1 for December delivery were up 1% to $3,846.90.

The U.S. dollar index .DXY fell 0.2%, making greenback-priced bullion less expensive for overseas buyers. USD/

"Some people describe gold as the sum of all fears, whether they're economic or political and it's quite clear that at the moment we've got issues on both sides," said independent analyst Ross Norman.

U.S. President Donald Trump will meet with the top Democratic and Republican leaders in Congress later on Monday to discuss extending government funding. Without a deal, a shutdown would begin from Wednesday.

Meanwhile, Russia launched hundreds of drones and missiles at Kyiv and other parts of Ukraine early on Sunday.

"With the Fed set to cut further rates over the next six months, I think there should be more upside for the yellow metal, targeting a level of $3,900/oz," said UBS analyst Giovanni Staunovo.

Gold, a safe-haven asset that tends to perform well in low-interest-rate environments, has climbed 45% this year, supported by strong central bank buying, the rise of gold ETFs, a weak dollar, and retail investor demand.

Many brokerages have turned bullish on the rally.

Among gold miners, Newmont Corp NEM.N said on Monday that CEO Tom Palmer would step down later this year, shortly after rival Barrick Gold Corp ABX.TO announced the sudden resignation of its CEO, Mark Bristow.

Elsewhere, spot silver XAG= climbed 1.4% to $46.65 per ounce, hitting a more than 14-year high, while platinum XPT= gained 1.9% to $1,597.18, a 12-year high, and palladium XPD= fell 0.6% to $1,262.

"(Silver and platinum-group metals) are responding to two primary things - increased industrial activity on rate cuts and higher levels of inventory holding as nations seek to ensure they have adequate availability in a world of supply chain uncertainty," Norman said.