Gold hits record high above $2,770 amid geopolitical tensions

Gold climbs to new ATH at $2,774 as mixed US data bolsters expectations of a Fed rate cut in November.

Safe-haven demand remains strong amid heightened Middle East conflict, Ukraine war, and rising odds for a Trump victory in US elections.

Investors await key economic data this week, including GDP, Nonfarm Payrolls, and the PCE Price Index, which could impact the Fed's path.

Gold hit a new all-time high (ATH) of $2,774 late in the North American session amid a risk-on mood and a retracement in US Treasury yields. Following the release of mixed US data on Tuesday, investors seem convinced that the Federal Reserve will lower borrowing costs at the November meeting.

The XAU/USD trades at $2,773, gains over 1%,  within striking distance of cracking the ATH after bouncing off daily lows of  $2,739.

The US Department of Labor revealed that the September Job Openings and Labor Turnover Survey (JOLTS) fell to its lowest level in three and a half years, missing analysts' expectations. Meanwhile, October's Conference Board (CB) Consumer Confidence showed its most impressive gain since March 2021.

Gold traded slightly below its opening price at the beginning of the week and is down by 0.15%, weighed down by rising US Treasury yields. Market players prepare for a busy economic docket in the United States (US), as the data will be crucial with investors looking for cues for the Federal Reserve’s (Fed) monetary policy path.

Meanwhile, traders are closely watching the upcoming US election on November 5. According to polling site FiveThirtyEight, Trump's chances of winning have risen to 52% compared to 48% for Vice President Kamala Harris. Despite this, the Democratic nominee still holds a slight lead in most national polls.