• Gold trades just below its record high, down 0.09%, as US Treasury yields rise over 10 basis points, reaching 4.192%.
• Safe-haven flows continue amid Middle East hostilities and US election uncertainty with polls showing a tight race between Harris and Trump.
• Fed officials hint at gradual rate cuts, but a 25 bps cut at the November meeting remains heavily priced in.

Gold prices hit another record high during Monday’s North American session, yet it paused its advance amid elevated US Treasury bond yields and a strong US Dollar. Tensions in the Middle East and uncertainty around the presidential election in the United States (US) increased flows toward safe-haven assets during the last five trading days. At the time of writing, XAU/USD trades at $2,718, slightly down 0.09%.

Market sentiment shifted negatively amid a close race in the US election. Reuters revealed that Vice President Kamala Harris leads former President Donald Trump 45% to 42% in the popular vote. However, the winner will be determined by the state-by-state results of the Electoral College.

“Polls have shown Harris and Trump are neck and neck in those battleground states, with many results within the margins of error,” via Reuters.

In the meantime, US Treasury bond yields soared over ten basis points higher to 4.192%. Consequently, the US Dollar Index (DXY), which tracks the buck’s value against a basket of six currencies, has risen 0.50%, hitting a new two-month peak at 104.01.

Hostilities in the Middle East continued as Israel revealed that a projectile from Lebanon hit an open area in central Israel. Meanwhile, Iran’s envoy to the United Nations said that Biden's remarks in Berlin on Israel’s plan to attack the country are “inflammatory.”