Investing.com-- Gold prices rose in Asian trade on Tuesday, steadying just below recent record highs as traders remained largely biased towards safe havens in anticipation of a tight 2024 presidential election. 

This notion saw gold and other precious metals remain strong even as the dollar firmed amid growing expectations that the Federal Reserve will cut interest rates at a slower pace.

Spot gold rose 0.5% to $2,734.38 an ounce, while gold futures rose 0.4% to $2,748.40 an ounce by 00:12 ET (04:12 GMT). Spot prices hit a record high of just over $2,740 an ounce on Monday.

Gold near record highs on election uncertainty 

Recent polls pointed to a close race between Donald Trump and Kamala Harris in the upcoming presidential election, which is about two weeks away. 

Uncertainty over the outcome, and the sharp contrast between the stances of both candidates saw traders turn largely risk-averse in recent sessions, favoring safe haven plays. This risk aversion is expected to increase as the elections draw closer.

Safe haven demand was also boosted by fears of an escalation in the Middle East conflict, after an attempted drone attack on Israeli Prime Minister Benjamin Netanyahu. Israel was also seen maintaining its offensive against Hamas and Hezbollah, and is reportedly planning a strike against Iran. 

Safe haven demand helped precious metal prices weather strength in the dollar, which rose to a near three-month high this week. The greenback was buoyed by increased bets on a slower pace of rate cuts by the Fed, which bode poorly for metal markets. 

Other precious metals also rose on Tuesday. Platinum futures rose 0.4% to $1,019.60 an ounce, while silver futures rose 0.7% and remained close to a 12-year high hit on Monday.

Copper recoups some losses, China in focus 

Among industrial metals, copper prices firmed on Tuesday, recouping some recent losses on the prospect of improving demand in top importer China.

Benchmark copper futures on the London Metal Exchange rose 0.7% to $9,638.50 a ton, while December copper futures rose 0.8% to $4.3943 a pound.

Copper was nursing steep losses over the past few weeks, as stimulus measures from China largely underwhelmed. The red metal fell on Monday even after the People’s Bank of China cut interest rates slightly more than expected.

But investors are holding out for more details from China on its plans to shore up economic growth with its recently announced stimulus measures. The National People’s Congress is set to meet later in October, and is widely expected to approve more fiscal spending to support growth.