Gold extended its gains above the $2,720 level earlier in the week as tensions in the Middle East worsened and the US presidential election boosted safe flows.
In addition, it is also supported by expectations of monetary policy in the Fed's mission to ease it at the remaining FOMC meeting this year.
At 9.25am, gold was at $2,726.45, up 0.19% since it opened in early Asian trade on Monday.
According to analysts, the escalating conflict, especially following Hezbollah's announcement to escalate the war with Israel, has attracted investors to flock to gold.
He also said that the momentum of concerns about the US presidential election and the expectation of a looser monetary policy has fueled the upward trend.
The prospect of further Fed rate cuts continues to support gold prices. The US central bank cut interest rates for the first time in more than four years at its September meeting.
According to FedWatch's CME Tool, the odds of an additional quarter-point rate cut in November are at more than 90%. Lower interest rates generally reduce the opportunity cost of traditional metal holders.
On the other hand, China's sluggish economy could affect precious metals. China's economy grew in the third quarter at the slowest pace since the beginning of last year.
