Gold hits fresh high in record-setting rally amid global uncertainties

Gold hits fresh high: Gold rose to a fresh high on Monday, extending its blazing rally amid uncertainties surrounding the US election, simmering Middle East tensions and rate cuts by major central banks, while silver scaled a near 12-year peak.Spot gold XAU= was up 0.4 per cent at $2,731.79 per ounce, as of 0331 GMT, after hitting an all-time high of $2,732.73 earlier. US gold futures GCv1 were 0.6 per cent higher at $2,746.80.Helped by bullion's rally, spot silver XAG= rose 1.3 per cent to $34.08 per ounce, its highest since late 2012."The current market environment consists of interest rates moving south combined with heightened geopolitical risks - a scenario which suits gold on both fronts," said Tim Waterer, chief market analyst at KCM Trade.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 in a 99 per cent chance of a US Federal Reserve interest rate cut in November. The European Central Bank cut interest rates by a quarter point last week.Lower rates generally enhance gold's allure, as bullion yields no interest. Gold is also considered a safe investment during times of economic and political turmoil.The 2024 US 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 Hezbollah group.For gold, "$2,800 looks to be a viable year-end target... There will be temptation to lock in some profits, which could slow the immediate upside," Waterer said.He, however, said he expected buyers would be waiting on the sidelines for better entry points should any pullback occur.Platinum XPT= rose 0.7 per cent to $1,020.95 per ounce, its highest since mid-July. Palladium XPD= gained 0.8 per cent to $1,087.87.

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Gold hits fresh high in record-setting rally amid global uncertainties

Helped by bullion's rally, spot silver XAG= rose 1.3 per cent to $34.08 per ounce, its highest since late 2012.

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