(Bloomberg) -- Gold hit a fresh record due to sustained haven demand, with investors focused on the approaching US election and conflict in the Middle East.

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Bullion climbed to $2,758.49 on Wednesday — more than $9 higher than Tuesday’s peak — before paring those gains.

Geopolitical risks have taken center stage amid the tight US presidential race and concerns that conflicts between Israel and Iran may escalate into a broader war. Bullish sentiment has also spilled over to the wider precious metals complex, with silver within striking distance of $35 an ounce, which it last reached in 2012.

The flight to safety has helped offset pressure from a selloff in US government bonds in recent days, as traders bet on a slower pace of easing by the Federal Reserve. Normally, higher yields and tight monetary policy settings tend to weigh on the precious metal, as it doesn’t pay interest.

“Gold’s ability to latch on to coattails that take prices higher irrespective of the macro backdrop suggests that the market continues to see positive underlying flows,” Standard Chartered Plc analyst Suki Cooper wrote in a note, adding that she expects further upside risk in the coming weeks. The bank sees gold averaging $2,800 an ounce in the fourth quarter, with prices set to average $2,900 for the first three months of 2025.

The precious metal has surged by about a third this year, hitting successive highs, with the rally intensifying in the last couple of months as the Fed pivoted to cutting interest rates. Money managers have also added to the strength of the increase, with hedge funds boosting net-long positions in gold in recent sessions and investors adding to exchange-traded fund holdings.

Spot gold was little changed at $2,751.04 an ounce as of 11:18 a.m. in London. The Bloomberg Dollar Spot Index edged up. Silver and palladium slipped, while platinum rose.

--With assistance from William Clowes.

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