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Gold near a record high amid safe-haven demand

Gold prices

Gold hit its all-time high of $2,740.37 on Monday and has added nearly 32% so far this year

Gold prices rose on Tuesday and hovered near a record high touched in the previous session amid ongoing Middle East tensions, expectations of central banks’ interest rate cuts, and uncertainties around the U.S. election.

Spot gold gained 0.4% to $2,729.91 per ounce by 0303 GMT. U.S. gold futures added 0.2% to $2,744.40.

Gold hit its all-time high of $2,740.37 on Monday and has added nearly 32% so far this year.

A confluence of tailwinds remains in place for gold, which includes its status as an attractive hedge against geopolitical risks and U.S. election uncertainties, resilient central banks’ demand and room for catch-up ETF buying, according to IG market strategist Yeap Jun Rong.

Buyers may seem to eye the $2,800 level next, as political uncertainties will persist as the election draws nearer, he said.

With the U.S. presidential election just more than two weeks away, former President Donald Trump and Vice President Kamala Harris are caught in a close battle to win over some of the more competitive states.

Elsewhere, traders now see a 91% probability of a quarter basis point cut by the Federal Reserve in November, as per the CME Fedwatch tool.

Gold’s rally comes despite a stronger U.S. dollar and yields. Benchmark 10-year Treasury yields advanced to a 12-week high in the last session, while the U.S. dollar clung to a two-and-half-month high on Tuesday.

Spot silver gained 0.5% to $33.93 per ounce after reaching its highest since late-2012 in the last session.

Citi Research revised its 6 to 12-month forecast for silver prices upward to $40 per ounce from $38 per ounce.

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