Gold prices stabilized after reaching an all-time high on Monday, as gains in U.S. Treasury yields and the dollar countered support from increasing uncertainties related to the U.S. presidential election and the Middle East conflict. Spot gold remained nearly unchanged at $2,723.35 per ounce as of 11:35 a.m. ET (1535 GMT), following a record peak of $2,740.37 earlier in the session. U.S. gold futures edged up 0.3% to $2,737.80.

"The 10-year yields are rising significantly, and the dollar index has strengthened. This is exerting some pressure on gold," explained Daniel Pavilonis, senior market strategist at RJO Futures. The benchmark 10-year Treasury yields climbed to a 12-week high, while the dollar index increased, making gold more costly for buyers using other currencies.

Gold, often viewed as a safe-haven asset during political and economic turmoil, has surged over 31% this year, breaking several record highs as the Federal Reserve's interest rate cuts, coupled with heightened demand for safe-haven assets, created an ideal environment for gold.

"With the U.S. elections just around the corner, and geopolitical tensions unfolding in the Middle East, particularly involving Israel and Iran, we are seeing increased uncertainty," Pavilonis noted. As the U.S. presidential election draws nearer, former President Donald Trump and Vice President Kamala Harris are locked in a tight race to secure votes in key states.

Meanwhile, residents in Beirut evacuated their homes as Israel prepared to target sites associated with Hezbollah's financial operations, stoking fears of further escalation in the region.

UBS analyst Giovanni Staunovo anticipates gold to reach $2,900 per ounce within the next 12 months, supported by additional rate cuts by the Fed. Traders currently estimate an 87% likelihood of a quarter basis point cut by the Fed in November.

Spot silver held steady at $33.66 per ounce after hitting its highest level since late-2012 earlier in the session. "We might see gold's ascent slow down while silver catches up," Pavilonis added. Platinum increased 0.7% to $1,006.48 per ounce, while palladium declined 2.7% to $1,050.91.

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