Gold price advances further beyond $2,600 mark, fresh record high
Gold price (XAU/USD) gains positive traction for the second successive day on Friday and advances to a fresh record high, beyond the $2,600 mark during the early European session. The Federal Reserve's (Fed) oversized interest rate cut on Wednesday was accompanied by a projection for another 50 basis points fall in borrowing costs by the end of this year. The outlook keeps a lid on the recent recovery in the US Treasury bond yields, which is seen undermining the US Dollar (USD) and benefiting the non-yielding yellow metal.
Apart from this, persistent worries over a slowdown in the United States (US) and China – the world's two largest economies – and the risk of a further escalation of geopolitical tensions in the Middle East turn out to be another factor lending support to the Gold price. That said, the prevalent risk-on mood might hold back bulls from placing fresh bets and cap the upside for the safe-haven XAU/USD. Nevertheless, the commodity seems poised to end in the green for the second straight week and the fundamental backdrop supports prospects for further gains.
Source: Fxstreet
