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

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Bullion climbed as much as 0.3% to an all-time high of $2,729.30 an ounce, topping last week’s peak by a few dollars. The bullish sentiment has also spilled over to silver, which was trading at the highest since 2012.

Markets are focused on geopolitical risks in the Middle East, with Israel discussing its next attack on Iran after a Hezbollah drone exploded next to Prime Minister Benjamin Netanyahu’s private home on Saturday. 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.

Gold futures may rise to average $3,000 an ounce in the fourth quarter of 2025, Commonwealth Bank of Australia analyst Vivek Dhar said in a note on Monday. The Federal Reserve’s rate-cutting cycle would likely drive weakness in the US dollar, he added. A lower greenback makes bullion cheaper for many buyers, as it’s priced in the US currency.

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 up 0.2% to $2,727.15 an ounce as of 9:57 a.m. in Singapore. The Bloomberg Dollar Spot Index held a decline. Silver, palladium and platinum all rose.

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