Gold prices hit a record high on Tuesday, as uncertainties surrounding the U.S. presidential election and the Middle East conflict, along with expectations of an interest rate cut by the Federal Reserve, boosted bullion's appeal.
Spot gold was up 0.9% at $2,766.00 per ounce as of 10:17 a.m ET (1417 GMT), after hitting a record high of $2,771.61 earlier in the session.
U.S. gold futures gained 0.9% to $2,779.50.
Bullion thrives in a low interest-rate environment and is considered a hedge against market volatilities. Gold prices have surged more than 34% so far this year.
Gold is supported by safe-haven bets as geopolitical tensions and political uncertainty continue, with Japan now being added into the mix on the political uncertainty front after the weekend election, said Peter Grant, vice president and senior metals strategist at Zaner Metals.
Republican former U.S. President Donald Trump and Democratic Vice President Kamala Harris are also caught in a tight race to the White House.
On the geopolitical front, at least 93 Palestinians were killed and missing in an Israeli strike in northern Gaza, the Gaza health ministry said.
Investors now await a series of economic data, including ADP employment on Wednesday, U.S. Personal Consumption Expenditures on Thursday and payrolls report on Friday to further gauge the Fed's policy stance, with its next rate decision on Nov. 7.
Markets are currently pricing in an almost 100% chance for a 25-basis-point rate cut by the Fed in November.
However, buyers in India, the world's second-biggest gold consumer, brushed off record high prices, making purchases for the Dhanteras and Diwali festivals.
Spot silver rose 2.2% to $34.45 per ounce. Platinum rose 1.8% to $1,051.10. Palladium rose 0.5% to $1,224.25, after hitting a 10-month high on sanction concerns on top producer Russia.
Source : Reuters
