Gold hit a record high on Monday, extending its blazing rally amid uncertainties surrounding the U.S. election, simmering Middle-East tensions and interest rate cuts by major central banks, while silver scaled a near 12-year peak.

Spot gold was up 0.3% at $2,729.40 per ounce, as of 0654 GMT, after hitting an all-time high of $2,732.73 earlier. U.S. gold futures were 0.6% higher at $2,744.80.

Helped by bullion's rally, spot silver rose 1.1% to $34.03 per ounce, its highest since late 2012.

Gold and silver stocks climbed in premarket trading. First Majestic Silver rose 5%; Coeur Mining and Pan American Silver rose 4%; Hecla Mining and $ndeavour Silver rose 3%; Newmont Mining, Kinross, and Anglogold Ashanti rose 1%.

"This month's rally is more driven by safe-haven demand because of geopolitical tension in the Middle East and uncertainty around the U.S. election because its outcome is looking very tight, anyone can win," said Soni Kumari, a commodity strategist at ANZ.

The 2024 U.S. 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 the Hezbollah group.

Gold is considered a safe investment during times of economic and political turmoil. Lower rates also enhance its allure, as bullion yields no interest.

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.