Gold price builds on its uptrend beyond $2,700, fresh record high and counting
Gold price gains positive traction for the fourth successive day and jumps to a fresh all-time peak. Major central banks remain in rate-cut mode and continue to benefit the non-yielding XAU/USD. Middle East tensions and the US political uncertainty provide an additional boost to the commodity.
Gold price (XAU/USD) prolongs its multi-day-old uptrend and climbs further beyond the $2,700 mark, hitting a fresh record high during the Asian session on Friday. The momentum is sponsored by the expected interest rate cuts by major central banks, which tends to boost demand for the non-yielding yellow metal. Apart from this, escalating tensions in the Middle East and the uncertainty surrounding the US Presidential election turn out to be another factor underpinning the precious metal.
Furthermore, a modest US Dollar (USD) pullback from its highest level since early August is seen benefiting the Gold price and contributing to the positive move. That said, expectations that the Federal Reserve (Fed) will proceed with modest interest rate cuts, bolstered by the upbeat US macro data released on Thursday, should help limit any meaningful USD corrective slide. This, in turn, warrants caution for bullish traders and before positioning for a further appreciating move for the XAU/USD.
Source: FXStreet
