By: Reuters

Spot gold rose 0.2% to $2,723.10 per ounce by 0400 GMT after scaling a record high of $2,758.37 on Wednesday as U.S. election jitters and Middle East tensions boosted demand.

U.S. gold futures <GCv1> gained 0.3% to $2,736.10.

Shares of Starbucks rose despite the coffee giant suspending its forecast amid falling demand for its pricey drinks. The U.S. dollar lingered near a three-month high, limiting gold's potential for a further rally. A stronger dollar makes gold more expensive for other currency holde

The U.S. dollar lingered near a three-month high, limiting gold's potential for a further rally. A stronger dollar makes gold more expensive for other currency holders.

U.S. Vice President Kamala Harris and Republican Donald Trump are in a tight race, with less than two weeks to go until the Nov. 5 presidential elections.

Israeli strikes on the Syrian capital Damascus and a military site near the western city of Homs killed one soldier and injured seven.

"For the rest of 2024, we see potential highs of $2,800, with 2025 targets around $3,000 or higher, driven by continued geopolitical risks, U.S. monetary easing cycle, and central bank purchases," said Sugandha Sachdeva, founder of New Delhi-based research firm SS Wealth Street.

U.S. economic activity remained steady from September to early October, with a slight rise in hiring, hinting at a likely 25-basis-point Federal Reserve rate cut soon. Lower rates reduce the opportunity cost of holding non-yielding bullion.

Lower borrowing costs, stimulus measures in China, and supply constraints will continue to drive silver higher, into 2025 it could potentially climb to levels around $45, Sachdeva said.

Spot silver firmed 0.5% to $33.89 per ounce.

Palladium jumped 5.1% to $1,111.50, its highest level since Sept. 18. The U.S. asked Group of Seven allies to consider sanctions on Russian palladium and titanium, Bloomberg News reported. Russia's Nornickel is the world's largest palladium producer.

Platinum rose 0.9% at $1,025.15.