Gold Price Forecast: XAU/USD hits another record high above $2,700

• Gold price gains momentum to near $2,720 in Monday’s early Asian session. 
• Uncertainty surrounding the US election and geopolitical risks prompted higher demand for safe-haven assets like Gold. 
• The fear of a Chinese economic slowdown could weigh on the XAU/USD. 

The Gold price (XAU/USD) extends its upside to around $2,720 during the early Asian session on Monday. The uncertainty surrounding tensions in the Middle East and the US presidential election boosts the safe haven flows. 

The uptick in the precious metal is bolstered by ongoing geopolitical tensions in the Middle East, uncertainties around the US elections and easing monetary policy expectations from the US Federal Reserve (Fed). "With the conflict intensifying – particularly following Hezbollah's announcement to escalate the war with Israel – investors are flocking to gold, a traditional safe-haven asset," noted Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany. "Adding to the momentum, concerns around the U.S. presidential election and anticipation of looser monetary policies have further fuelled the rally," Zumpfe added.

Furthermore, the prospects of further Fed rate cuts continue to underpin the Gold price. The US central bank lowered its interest rates for the first time in more than four years in the September meeting. According to the CME FedWatch Tool, the odds of an additional quarter-point rate cut in November stand at more than 90%. Lower interest rates generally reduce the opportunity cost of holding non-yielding bullion, lifting the Gold price. 

On the other hand, China’s sluggish economy could undermine the precious metal. China's economy grew in the third quarter (Q3) at the slowest pace since early last year. The National Bureau of Statistics reported on Friday that the GDP expanded 4.6% YoY in Q3 versus 4.7% prior. This figure was below the government's "around 5%" target for this year. This, in turn, might weigh on the yellow metal as China is the world's largest gold consumer.