Affected by multiple factors such as tensions in the Middle East, uncertainty about the U.S. presidential election and interest rate cuts by central banks, spot gold hit a record high of $2,732.88 per ounce on Monday.

Tensions rose on Friday when Hezbollah announced that its conflict with Israel had entered a more intense phase. Meanwhile, hundreds of Beirut residents left their homes over the weekend as Israel prepared to launch attacks on sites linked to Hezbollah's financial operations.

On the political front, polls show former U.S. President Donald Trump and Vice President Camara Harris are evenly matched in the election race in seven key swing states that will determine the outcome of the November election.

In terms of central bank monetary policy, the market currently expects the possibility of the Federal Reserve cutting interest rates at its November policy meeting to be about 99%.The European Central Bank cut interest rates for the third time last week, further boosting demand for gold.

Lower interest rates reduce the opportunity cost of holding gold because gold itself does not pay interest.Tim Waterrer, chief market analyst at KCM Trade, said: "The current market environment is a combination of downward interest rates and increased geopolitical risks, which is a positive factor for the gold market.”

Waterrer also mentioned: "$2,800 looks like a possible year-end goal...…However, investors may want to lock in some profits, which could slow gold's immediate gains.”