These factors have driven investors to gold, reinforcing its role as a safe-haven asset amidst global instability.

However, gold's upward momentum faces potential resistance due to a strengthening U.S. dollar and rising bond yields.

"When yields climb, non-yielding assets like gold often become less attractive to investors," explained a market analyst.

Bond yields have edged up in recent sessions, weighing on gold's appeal. With the election on Tuesday, market participants are closely watching how its outcome could further influence gold demand.

The U.S. dollar has weakened slightly, pressured by election-related uncertainties and upcoming Federal Reserve decisions. With the Fed's rate decision due on Thursday, most analysts expect a rate cut of 25 basis points rather than a more aggressive 50-point cut.

"A rate cut could support gold, as lower rates tend to weaken the dollar and increase gold's appeal," noted analysts from Commerzbank.

The anticipation of rate cuts, coupled with high government deficits, is expected to push more investments into gold ETFs.