Investing.com-- Gold prices hit a record high in Asian trade on Monday, extending a rally from last week as uncertainty over the U.S. election and anticipation of Israel’s retaliation against Iran fueled safe haven demand. 

Other precious metals also advanced, with silver in particular racing to a 12-year peak, while industrial metal prices, specifically copper, also firmed following an interest rate cut in top importer China. 

Metal prices rose even as the dollar remained close to its highest levels since early-August, as traders penciled in a slower pace of interest rate cuts by the Federal Reserve. 

Spot gold rose 0.4% to a record high of $2,732.86 an ounce, while gold futures expiring in December rose 0.6% to $2,747.70 an ounce. 

Gold, silver prices surge on safe haven demand 

Precious metal prices were buoyed chiefly by increased safe haven demand, especially as reports over the weekend showed Israel was planning a strike against Iran over a missile strike earlier in the month. 

Hostilities between Israel and Hamas and Hezbollah also continued, pointing to little deescalation in Middle East tensions.

Traders were also biased towards safe havens before the U.S. presidential elections in early-November, with analysts at ANZ stating that the race was “too close to call.” 

Recent polls showed Donald Trump and Kamala Harris almost neck-and-neck, although prediction markets largely favored a Tump victory. 

The safe haven demand helped precious metals firm past signs of resilience in the U.S. economy, which saw traders positioning for a slower pace of rate cuts by the Fed. The Fed is widely expected to cut rates by 25 basis points in November.

Silver futures rallied 3.1% to $34.328 an ounce- their highest level since September 2012, while platinum futures 0.6% to $1,031.15 an ounce. 

Copper rallies as China cuts interest rates 

Among industrial metals, copper prices rose following a slightly bigger-than-expected rate cut by top importer China.

Benchmark copper futures on the London Metal Exchange rose 1.2% to $9,746.0 a ton, while December copper futures rose 1.2% to $4.4450 a pound.

The People’s Bank of China cut its benchmark loan prime rate slightly more than expected on Monday, the latest in a flurry of stimulus measures from Beijing. 

But earlier signals on stimulus had somewhat underwhelmed traders, given that Beijing did not provide key details on the timing or scale of its planned measures. 

This saw copper nursing steep losses over the past week.