(Bloomberg) -- Gold climbed to a fresh record as the approaching US election and conflict in the Middle East boosted haven demand.

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Bullion hit an all-time high of $2,742.08 an ounce, topping Monday’s record. Traders have flocked to the market amid a tight US presidential vote and persistent concern that violence in the Middle East may escalate into a wider war.

Robust central-bank buying and expectations of US interest-rate cuts have also underpinned gold’s stellar run this year. Federal Reserve officials continue to opine on the path forward, with Jeffrey Schmid favoring a slower pace of rate reductions and Mary Daly forecasting more cuts.

“Gold is one of this year’s strongest-performing commodities, with gains of more than 30% so far supported by rate-cut optimism, strong central-bank buying and robust Asian purchases,” ING Bank NV wrote in a note. “Haven demand amid heightened geopolitical risks, as well as uncertainty ahead of the US election in November, have also supported gold’s record-breaking rally.”

Money managers have increased net-long positions in gold, while investors have added to holdings in exchange-traded funds. Citigroup Inc. analysts boosted their three-month price forecast by 3.7% to $2,800 an ounce amid expectations that further labor-market deterioration will drive demand.

While the outcome of the US election remains uncertain, Saxo Bank A/S Head of Commodity Strategy Ole Hansen suggests gold and silver are getting caught up in bets on a Republican victory.

See also: What the Harris-Trump Election Means for Markets: QuickTake

Spot gold rose 0.8% to $2,740.71 an ounce at 9:49 a.m. in New York. The Bloomberg Dollar Spot Index was little changed. Palladium, platinum and silver all gained.

--With assistance from Sybilla Gross.

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