Gold extended its blazing strike to soar to a record high on Monday amid uncertainties surrounding the U.S. election, simmering Middle-East tensions and interest rate cuts by major central banks. At the same time, silver scaled a near 12-year peak.
Spot gold was up 0.3% at $2,729.40 per ounce, as of 06:54 GMT a.m., after hitting an all-time high of $2,732.73 earlier. U.S. gold futures were 0.6% higher at $2,744.80.
Helped by bullion's rally, spot silver rose 1.1% to $34.03 per ounce, its highest since late 2012.
"This month's rally is more driven by safe-haven demand because of geopolitical tension in the Middle East and uncertainty around the U.S. election because its outcome is looking very tight, anyone can win," said Soni Kumari, a commodity strategist at ANZ.
The 2024 U.S. presidential race between former President Donald Trump and Vice President Kamala Harris is neck and neck in the seven battleground states that will decide the Nov. 5 election.
In the Middle East, hundreds of Beirut residents fled their homes late Sunday, with multiple explosions heard, as Israel prepared to attack sites linked to the financial operations of the Hezbollah group.
Gold is considered a safe investment during times of economic and political turmoil. Lower rates also enhance its allure, as bullion yields no interest.
Investors also digested news that China cut its benchmark lending rates, following reductions to other policy rates last month as part of a package of stimulus measures to revive the economy.
Gold demand in top consumer China has taken a hit amid high prices and an economic slowdown.
Elsewhere, traders are pricing a 99% chance of a U.S. Federal Reserve (Fed) interest rate cut in November. The European Central Bank (ECB) slashed rates by a quarter point last week.
For gold, "$2,800 looks to be a viable year-end target... There will be a temptation to lock in some profits, which could slow the immediate upside," said Tim Waterer, chief market analyst at KCM Trade.
Platinum rose 0.3% to $1,016.21 per ounce, its highest since mid-July. Palladium gained 0.3% to $1,076.