Gold prices rose to a new record high on Tuesday, driven by comments from Federal Reserve officials reflecting a more dovish bias in monetary policy and by rising tensions in the Middle East.
Spot gold was up 0.3 percent at $2,636.85 an ounce by 0507 GMT, having hit a record $2,638.37 earlier in the session. It also hit an all-time high on Monday.
US gold futures rose 0.4 percent to $2,661.60 an ounce.
Chicago Fed President Austin Goolsbee said Monday he expects several more rate cuts over the next 12 months as the Fed seeks a soft landing for the economy, controlling inflation without collapsing the labor market.
Comments from U.S. policymakers are being closely watched after the Federal Reserve's decision last week to cut interest rates by half a percentage point.
Other Fed speakers on Monday, including Atlanta Fed President Raphael Boucek and Minneapolis Fed President Neel Kashkari, justified the central bank's big move on interest rates.
The opening of a new war front in the Middle East between Israel and Hezbollah has also led to some safe-haven buying of gold in an attempt to hedge against the geopolitical risks of any wider regional war, said IG market strategist Yip Jun Rong.
He added that the escalation of tensions in the region is likely to continue for a longer period, which may lead to gold prices remaining on an upward path.
The Israeli military launched air strikes on Hezbollah positions in Lebanon on Monday, killing 492 people and forcing tens of thousands to flee in the country's bloodiest day in decades.
As for other precious metals, silver rose in spot transactions by 1.3% to $31.07 per ounce, platinum rose by 1.4% to record $969.35 per ounce, and palladium rose by 1.1% to $1,053.09 per ounce.
