Gold prices have recently revisited record highs, bolstered by ongoing US-China trade disputes that are fueling safe-haven asset demand. Concerns regarding a potential US recession, coupled with expectations of Federal Reserve rate cuts and a weaker US Dollar, are also contributing to the upward pressure on XAU/USD. Gains are somewhat limited by improved risk appetite and a slightly overbought Relative Strength Index (RSI).
Currently trading near $3,230, gold is consolidating after a three-day rally, as market participants assess global risk sentiment. Heightened trade tensions between the US and China continue to provide underlying support. Furthermore, widespread anticipation of multiple Federal Reserve rate cuts this year is keeping the US Dollar near multi-month lows, further benefiting the non-yielding precious metal. The prevailing fundamental conditions suggest a bullish outlook for XAU/USD, advising caution against anticipating significant near-term price corrections.
