US stock markets edged lower and gold retreated from a record high on Tuesday as traders steeled themselves for a possible US government shutdown.

A White House meeting Monday with congressional leaders ended without a breakthrough, raising the odds of a shutdown starting at midnight on Tuesday, Washington time (0400 GMT Wednesday).

While shutdowns are not usually painful in investor terms, markets remained cautious, analysts said.

“Usually, markets ignore shutdowns — most last only a few days and investors seem to take a long-term view of the situation, and the short duration of most incidents has little impact on company profits,” said Neil Wilson, investor strategist at Saxo.

However, Wilson warned: “It could be different this time. Deep political divisions could see this drag on. A

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