Gold prices climbed more than 1% on Wednesday as investors sought safety amid growing market unease and a slight pullback in the U.S. dollar.

By 08:45 GMT, spot gold had risen 1.3% to $3,981.27 per ounce, while U.S. gold futures for December delivery advanced 0.8% to $3,991.90.

According to Carsten Menke, analyst at Julius Baer, the recent “risk-off” sentiment in global financial markets—sparked by concerns over high equity valuations—has helped gold recover after its retreat from record highs.

European stocks hit a two-week low as global investors continued to worry about stretched valuations. Meanwhile, the U.S. dollar index slipped 0.1% after recently touching its strongest level in over three months, making gold more affordable for holders of other currencies.

With the U.S. government shutdown nearing record length, investors are turning to private-sector data such as the ADP National Employment Report, due later on Wednesday, for signals about the Federal Reserve’s next interest rate move.

The Fed lowered rates last week, and Chair Jerome Powell indicated it may be the final cut of the year. Following his remarks, traders now see a 72% chance of another rate cut in December, down from more than 90% earlier, according to CME’s FedWatch Tool.

Gold, which offers no yield, tends to benefit when interest rates fall or uncertainty rises. “We continue to see strong safe-haven demand for physical gold, particularly from emerging-market central banks,” Menke added.

So far this year, gold has surged roughly 52%, hitting an all-time high of $4,381.21 on October 20. The rally has been fueled by geopolitical tensions, economic worries, expectations of rate cuts, and ongoing central bank purchases.

Among other precious metals, silver gained 1.6% to $47.87 per ounce, platinum rose 0.7% to $1,546.21, and palladium increased 1.3% to $1,408.99.

On Wall Street, U.S. stocks ended sharply lower on Tuesday, with the Dow Jones Industrial Average dropping more than 0.5% and the S&P 500 sliding over 1%.