Gold futures on Nymex are trading above $3,900 an ounce for the first time as buyers pile into the market amid a U.S. government shutdown that increases political uncertainty and is weakening the dollar.

Investors have typically been unfazed by government closures, but the longer a shutdown runs, the greater the chance of longer-lasting effects.

Veteran trader Dave the Wave is predicting gold will soon hit a massive price target as the precious metal's bull run continues.

China reportedly has plans to invite some countries to buy physical gold and store it within its borders, in the country’s latest move to expand its reach into the international market for the precious metal.

Australian stocks seesawed throughout Wednesday’s trading and the price of gold jumped to a new record high, as investors once again feared the latest news coming out of Washington.

Tether's XAUT and Paxos' PAXG, the two largest gold-backed tokens, posted record monthly trading volumes as spot gold pushed above $3,800.

Gold rose as much as 1% on Tuesday, hitting a new peak and bringing $4,000/oz closer into view. It is up a whopping 45% this year, and recently scaled its previous inflation-adjusted high from 1980 of around $3,500/oz.

The dollar fell Wednesday after U.S. lawmakers failed to avert a government shutdown, raising questions from traders about the potential economic impact.