Global gold prices rose to an all-time high on Wednesday as demand for safe-haven assets increased due to conflicts in the Middle East and uncertainty surrounding the upcoming US elections.

Gold's rise comes despite the rival US dollar holding at its highest level in more than two months.

Gold and the dollar are enjoying safe-haven buying flows due to uncertainty surrounding next month's U.S. elections and ongoing geopolitical risks, Tim Waterer, chief market analyst at KCM Trade, said in a note.

Democratic Vice President Kamala Harris leads former Republican President Donald Trump by 46% to 43%, new Reuters/Ipsos polls show.

Gold prices have risen more than 33% this year and hit multiple records, driven by global uncertainty and falling interest rates.

While the Fed began its rate-easing cycle with a 50 basis point cut last month, the prospect of a similar move in November has all but disappeared, with traders now seeing a 92% chance of a quarter-basis point cut, according to the Investing Saudi Arabia US Rate Tracker tool.

Paul Wong, an analyst at Sprott Asset Management, said gold's rise was supported by factors such as central bank demand, rising U.S. debt and expectations of a weaker dollar as U.S. interest rates fall.

“The narrowing of the odds of victory between the Democratic and Republican presidential candidates has created uncertainty about the outcome, which has been supportive of gold,” analysts at BNP Paribas (EPA:BNPP) said in a note.

Citibank forecast

Citibank's research unit has raised its gold price forecasts for the next three months, citing the potential for further deterioration in the U.S. labor market, interest rate cuts by the Federal Reserve, and increased demand for physical gold and exchange-traded funds (ETFs), it said in a new note disclosed Monday.

The bank upgraded its three-month gold price forecast to $2,800 per ounce from $2,700 previously, adding that its six- to 12-month forecast was $3,000.

Gold at settlement yesterday

Gold futures prices extended gains on Tuesday, supported by increased demand for safe-haven assets due to uncertainty over the US elections and geopolitical tensions in the Middle East.

At the settlement of trades, gold futures for December delivery rose by 0.75%, or $20.9, to $2,759.8 per ounce, with the yellow metal achieving a record close for the fourth consecutive session.

Gold and dollar now

Spot gold hit an all-time high of $2,750, up 0.05% on the day.

Meanwhile, US gold futures rose 0.13% to $2,763.40.

On the other hand, the dollar index contracts rose by 0.07% to 103.98 points.

Other minerals

Spot silver fell 0.7% to $34.58 an ounce, after hitting its highest since late 2012 at $34.87 in the previous session.

Platinum rose 0.5 percent to $1,033.75 an ounce, and palladium fell 0.2 percent to $1,073.80 an ounce.