• Gold rises 0.98%, reaching $2,720 as geopolitical tensions and US election concerns drive demand for safe-haven assets.
• Falling US Treasury yields and the weakening US Dollar further boost Bullion prices, with the US Dollar Index dropping to 103.45.
• Analysts predict continued Gold gains with Citi’s Max Layton forecasting prices could reach $3,000 an ounce within 6-12 months.

Gold prices continued to print record highs after breaching the $2,700 figure amid uncertainty surrounding the US election and tensions in the Middle East. This weighed on US Treasury bond yields and the Greenback, which tumbled to a two-day low of 103.45 after hitting a two-month peak of 103.87. At the time of writing, the XAU/USD trades at $2,718, up by 0.98%.

The market mood remains upbeat as Wall Street registers modest gains. In the meantime, geopolitics took center stage after Israel confirmed the death of Hamas leader Yahya Sinwar. Meanwhile, Hezbollah said that it is escalating its confrontation with Israel as US Defense Secretary Austin commented that the death of the Hamas leader could provide an opportunity for a ceasefire.

According to Kann News, US Secretary of State Antony Blinken told Israel’s President Isaac Herzog that he’s expected to arrive in the coming days to discuss a ceasefire deal.

Bullion prices extended their gains following Hezbollah’s threat to escalate the conflict. The XAU/USD rose sharply above $2,700 and reached an all-time high of $2,720.

Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany, commented that, in addition to geopolitics, “Concerns around the U.S. presidential election and anticipation of looser monetary policies have further fueled the rally.”