By Rahul Paswan

(Reuters) – Gold prices rose on Tuesday and hovered near a record high hit in the previous session amid uncertainties around the U.S. election, ongoing Middle East tensions, and expectations of central banks’ interest rate cuts.

Spot gold rose 0.4% to $2,729.91 per ounce by 0303 GMT. U.S. gold futures rose 0.2% to $2,744.40.

Gold hit its all-time high of $2,740.37 on Monday and has gained about 32% so far this year.

“A confluence of tailwinds remains in place (for gold), which includes its status as an attractive hedge against U.S. election uncertainties and geopolitical risks, resilient central banks’ demand and room for catch-up ETF buying,” IG market strategist Yeap Jun Rong said.

“Buyers may seem to eye the $2,800 level next, as political uncertainties will persist as the election draws nearer.”

With the U.S. presidential election just over two weeks away, former President Donald Trump and Vice President Kamala Harris are caught in a knife-edge battle to win over some of the more competitive states.

Recently, Israel has assassinated the leaders of Hezbollah in Lebanon and of Hamas in Gaza, while showing no sign of reining in its ground and aerial offensives.

Elsewhere, traders now see a 91% chance of a quarter basis point cut by the Fed in November, according to the CME Fedwatch tool.

Gold’s rally comes despite a firmer U.S. dollar and yields. Benchmark 10-year Treasury yields rose to a 12-week high in the last session, while the U.S. dollar clung to a two-and-half-month high on Tuesday. [USD/] [US/]

Spot silver rose 0.5% to $33.93 per ounce after hitting its highest since late-2012 in the last session.

Citi Research revised its 6 to 12-month forecast for silver prices upward to $40 per ounce from $38 per ounce.

Platinum rose 0.3% to $1,006.35 per ounce. Palladium added 0.6% to $1,057.65.