Mumbai, Oct. 2 -- The price of gold is hovering around a record high, amid growing concerns of a US government shutdown, while weak labor data strengthened expectations of further interest rate cuts by the Federal Reserve.

The price of 24-carat gold (10 gram) rose to a new high of Rs 1,15,350, according to data published by the India Bullion and Jewellers Association (IBJA). The price of bullion closed at Rs 1,16,903 per 10 grams as per IBJA data. US gold futures for December delivery rose 0.7 per cent to $3,901.

Precious metals remained volatile, with gold and silver slipping from early highs as traders booked profits. Later in the evening session, both metals recovered from their intraday lows as hedging activity increased.

In Septe...