Gold futures extended gains for a third straight session, as investors continued to follow safe haven trading on geopolitical worries that have ratcheted higher since Russia's Vladimir Putin lowered the threshold for a nuclear strike in response to a broader range of missile attacks from Ukraine.

The Russia-Ukraine war is re-emerging as a key support factor for gold, and analysts say the risks could contribute to more buying interest in gold and provide a foundation for sustained interest in the metal going forward, although persistent pressure from a stronger U.S. dollar could continue to cap gains.

Robust economic data and concerns over potential tariffs and tax cuts could heighten inflationary risks and lead to a potential pause in Federal Reserve interest rate cuts, which could create additional downward risks for non-interest bearing gold in the near-term, DHF Capital's Bas Kooijman said.

Front-month Comex gold (XAUUSD:CUR) for November delivery ended +0.8% to $2,648.20/oz, its best settlement since November 8, but front-month November silver (XAGUSD:CUR) closed -0.8% to $30.956/oz.

ETFs: (NYSEARCA:GLD), (NYSEARCA:GDX), (GDXJ), (IAU), (NUGT), (PHYS), (GLDM), (AAAU), (SGOL), (RING), (BAR), (OUNZ), (SLV), (PSLV), (SIVR), (SIL), (SILJ)

Gold will rally to $2,900/oz by the end of next year, according to analysts at UBS, echoing Goldman Sachs' outlook earlier this week for further gains.

Following a likely period of consolidation due to the stronger dollar and concerns over the potential for higher rates in the U.S., UBS analysts including Levi Spry and Lachlan Shaw said they see gold climbing again.

"The U.S. Red Sweep, strong diversification buying interest and elevated global uncertainty [will] continue to support prices... driven by continued strategic gold allocations and official-sector purchases in a backdrop of high macro volatility and persistent geopolitical risks," UBS said.

Like Goldman's $3,000 gold forecast, the UBS bullish view also anticipates higher demand from central banks and stronger flows to ETFs.

"The official sector, which tends to buy physical gold bars, is likely to continue adding to reserves, for diversification purposes and amid geopolitical tensions and sanctions risks," UBS wrote, adding that "many central banks' gold reserves remain small as a percentage of total assets."