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Gold rose to around $2,732 per ounce on Tuesday, trading at record levels, supported by its status as a safe haven asset. Reports indicate that Israel has targeted sites linked to Hezbollah's financial operations on Beirut, raising concerns about escalating conflict. Israel's retaliatory strike on Iran is also back on the table after an Iranian drone's breach of air defenses exploded near Prime Minister Netanyahu's residence. Additionally, the tight US election just a couple of weeks away is further driving haven demand. Simultaneously, monetary easing from major central banks supports gold's upward momentum, with the PBoC and ECB recently lowering their key lending rates. Meanwhile, traders are assessing differing views from Fed officials on the future path of US monetary policy. Kansas City Fed President Jeffrey Schmid advocates for a slower pace of rate cuts, while San Francisco Fed President Mary Daly emphasizes the need for more cuts to protect the labor market.
