Gold prices drifted higher on Thursday, as safe-haven demand countered a firmer dollar, while palladium hit a more than one-month peak.

Gold steadied near a record high, as it receives sustained haven demand with investors monitoring the approaching US election and conflict in the Middle East.

The spot price of gold on Thursday stood at $2,729 on the back of uncertainty over the U.S. presidential election and mounting geopolitical risks.

Gold prices drifted higher on Thursday, propped up by safe-haven demand, while palladium hit a more than one-month peak after a media report sparked fears of sanctions on Russian supplies. Spot gold rose 0.

Gold has had a spectacular bull run this year. A pullback below $2,700 may signal a deeper correction amid election uncertainty. However, swift recovery suggests gold could eye the $3,000 mark by year-end.

As of 0748 GMT, spot gold was trading at $2,754.25 per ounce, following a record high of $2,755.30 earlier in the session. Meanwhile, U.S. gold futures increased by 0.3%, reaching $2,768.40.

The price of gold has reached a fever pitch, breaking its record price almost forty times this year. Gold's most recent record highs saw the precious metal soaring to over $2,750 per ounce. The surge is driven by a potent mix of macroeconomic forces and investor sentiment that has pushed gold prices up by 26% year-to-date and over 40% for the full year.