Pakistan, Oct. 6 -- SINGAPORE - Gold surged beyond the $3,900-per-ounce mark for the first time on Monday, buoyed by safe-haven demand amid a sliding yen, political turmoil in Japan, and the ongoing U.S. government shutdown. Hopes of further Federal Reserve rate cuts also strengthened the rally.

By 0208 GMT, spot gold was up 0.9% at $3,922.28 per ounce, after touching an all-time high of $3,924.39 earlier in the session. U.S. gold futures for December delivery climbed 1% to $3,947.30. "Yen weakness on the back of the Japanese LDP elections has left investors with one less safe-haven asset to go to, and gold was able to capitalise," said Tim Waterer, Chief Market Analyst at KCM Trade.

Waterer added that the U.S. government shutdown conti...