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Gold rose on Thursday to hover below record levels, underpinned by uncertainty surrounding the U.S. elections and expectations of more rate cuts by major central banks, while investors looked forward to a slew of U.S. data for further direction.

Spot gold rose 0.3% to $2,682.14 per ounce by 0221 GMT. Prices had climbed to a session high of $2,685.16 on Wednesday, shy of the record $2,685.42 scaled on Sept. 26.

U.S. gold futures gained 0.2% to $2,697.40.

"Investors are seeking safe-haven gold as a hedge amid uncertainty over the U.S. elections. A Trump presidency should support gold as it might raise trade tensions and widen the budget deficit," said Kelvin Wong, OANDA's senior market analyst for Asia Pacific.

"In the very short term, prices could face resistance at $2,700 levels."

Republican presidential candidate Donald Trump on Tuesday defended his protectionist trade policies and other fiscal proposals.

The U.S. retail sales and industrial production data for September, as well as weekly jobless claims data, are all due later in the day.

If the retail sales data misses expectations, it could provide next leg higher for gold, analysts at SP Angel said in a note.

Traders see a 92% chance of a 25-basis-point rate cut by the U.S. central bank next month, the CME FedWatch tool showed.

The European Central Bank is likely to lower rates again, arguing inflation in the euro zone is now increasingly under control. British inflation slowed sharply last month, which reinforced bets on a Bank of England rate cut next month.

Lower interest rates and geopolitical tensions tend to boost bullion, which is considered a safe asset and yields no interest.

Elsewhere, the mayor of a major town in south Lebanon was among 16 people killed when an Israeli airstrike destroyed its municipal headquarters.

Spot silver rose 0.4% to $31.79 per ounce. Platinum gained 1.2% to $1,005.00 and palladium firmed 0.5% to $1,028.72.