Hezbollah says it will escalate war with Israel
Gold hits record high of 2,714.00; prices up 2 for the week
Silver set for weekly gain

Oct 18 Reuters Gold raced past the 2,700 mark for the first time on Friday, extending a rally driven by expectations of further monetary policy easing and safehaven demand due to uncertainty about the U.S. presidential elections and Middle East conflicts.

Spot gold rose 0.6 to 2,709.81 per ounce by 1145 GMT, having hit an alltime high of 2,714.00 earlier in the session. Bullion has gained over 2 so far this week. U.S. gold futures gained 0.7 to 2,725.

The markets continue to look to geopolitics and the overnight developments in the Middle East continue to fan the flames of uncertainty, said StoneX analyst Rhona O39;Connell.

Lebanon39;s Hezbollah militant group said on Friday it was moving to a new and escalating phase in its war against Israel, while Israel39;s Prime Minister Benjamin Netanyahu late on Thursday vowed to press on with wars in Lebanon and Gaza.

Rising geopolitical tensions prompt investors to seek safehaven assets like gold, driven by risk aversion and concerns over global market instability.

There39;s no surprise that gold broke fresh highs and the psychologically important 2,700 during Asian hours as it appears speculative interest is coming from that region, independent analyst Ross Norman said.

Gold is benefiting from some very high conviction trades and not only is ignoring key factors like inflation…