(Bloomberg) -- Gold reached a record high, with safe haven demand continuing to support prices as traders monitored escalating tensions in the Middle East and an increasingly tight US election race.

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Bullion edged higher to hit an all-time high of $2,723.33 an ounce, topping last week’s peak by a few cents, as trading opened on Monday to news that Israel is discussing its attack on Iran after a Hezbollah drone exploded next to Prime Minister Benjamin Netanyahu’s private home. US President Joe Biden and his administration have urged the renewal of cease-fire negotiations in the region, though Israeli hard liners oppose concessions.

Traders were also repositioning portfolios ahead of the US election on Nov. 5. Polls show the contest between Donald Trump and Kamala Harris could be the closest in a generation. Investors typically seek safety in gold in times of geopolitical and economic uncertainty.

Bullion is one of 2024’s strongest performing commodities, with gains of more than 30% so far this year. Rate-cut optimism fueled the most recent advances as the Fed kicked off its easing cycle last month. Robust central bank buying has also been a long-standing pillar of support for gold prices.

Spot gold was little changed at $2,721.59 an ounce as of 6:43 a.m. in Singapore. Silver, palladium and platinum all rose.

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