Gold prices rose to a record high in Asian trading on Wednesday, extending a series of recent gains amid expectations of a contentious U.S. presidential election and ongoing tensions in the Middle East, which boosted demand for safe havens.

The strength of the yellow metal came despite the dollar reaching its highest level in nearly three months, amid growing bets that the Federal Reserve will cut interest rates at a slower pace. Other precious metals have also been showing strong gains in recent sessions.

Spot gold rose slightly to a record high of $2,750.35 per ounce, while December gold futures increased by 0.2% to $2,764.15 per ounce.

The gains in gold prices were primarily driven by increased demand for safe havens, as traders prepared for a tight presidential election.

Republican nominee Donald Trump was seen gaining an edge over Democrat Kamala Harris, according to some recent polls. However, analysts still view the race as too close to call, with about two weeks left until voting.

Military tensions in the Middle East also boosted demand for safe havens, with signs of escalation in the conflict.

Gold has largely shrugged off pressure from a stronger dollar and rising Treasury yields.

Recent signs of resilience in the U.S. economy have increased bets that the Federal Reserve will cut interest rates by 25 basis points in November, which is less than the 50 basis points cut seen in September.

On the other hand, silver futures fell by 0.5% to $34.885 per ounce, while platinum futures rose by 0.5% to $1,046.10 per ounce.

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