Gold futures added to record highs on Friday, as the ongoing Middle East war and the implications of the U.S. presidential elections for economic and trade policies continue to cause investors to seek out safe-haven assets, supported by the prospect of major central banks cutting interest rates.

Spot gold rises 1% to hit record high at $2,718.93 per ounce.

Gold bulls have gained the upper hand in a surge that reflects uncertainty around the U.S. economic outlook, with initial jobless claims exceeding expectations and the Federal Reserve warning that hurricanes and strikes could reduce October non-farm payrolls by as much as 100K, Pepperstone strategist Dilin Wu said.

Combined with the massive budget deficit, concerns have intensified over the U.S. economic trajectory, pushing investors toward gold as a safe haven amid rising volatility and unclear monetary policy, Wu said.

Even though gold has gained more than 30% YTD, making it one of the best performing commodities of 2024, some analysts believe gold is not likely to reach a price ceiling anytime soon.

"The key drivers for gold are unchanged - out-of-control federal spending which ultimately forces the Fed to debase the U.S. dollar," Altavest managing partner Michael Armbruster said.

Gold is "climbing against all paper currencies, not just the U.S. dollar," SIA Wealth Management top strategist Colin Cieszynski said, noting support Thursday from the European Central Bank rate cut, "which reminds everyone that most of the major central banks have gone into easing mode, not just the Fed."