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 safe-haven demand due to uncertainty about the U.S. presidential elections and Middle East conflicts.

Spot gold rose 0.7% to $2,711.75 per ounce by 0933 GMT, having hit an all-time 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 $2,726.90.

“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 O’Connell.

Lebanon’s Hezbollah militant group said on Friday it was moving to a new and escalating phase in its war against Israel, while Israel’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 safe-haven assets like gold, driven by risk aversion and concerns over global market instability.

“There’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 declining and Treasury yields, but it is scarcely pausing for consolidation – let alone profit taking.”

Gold has surged more than 31% this year, with gains driven by the anticipation of more easing by major central banks including the U.S. Federal Reserve and geopolitical tensions.

In the physical markets, dealers in India were forced to offer discounts this week, as record high prices dampened demand ahead of a key festival.

“On a technical basis, should gold continue to push higher, it may encounter resistance at around $2,750 an ounce, which is the upper boundary of a rising trend channel that we’ve seen since late July,” said Frank Watson, market analyst at Kinesis Money.

Spot silver rose 1.2% to $32.07 and headed for a weekly gain. Platinum added 1.6% to $1,007.54 and palladium increased 2.1% to $1,063.50.