Gold price hits two-week top despite bullish USD and rising bond yields
Gold price (XAU/USD) continues to attract haven flows for the fifth consecutive day amid intensifying Russia-Ukraine conflict and climbs to a two-week top during the Asian session on Friday. The commodity, which is considered a hedge against inflation, now looks to reclaim the $2,700 on the back of expectations that US President-elect Donald Trump's expansionary policies could reignite inflationary pressures.
The XAU/USD bulls, meanwhile, seem rather unaffected by an extension of the post-US election US Dollar (USD) rally to its highest level since October 2023. Moreover, speculations that higher inflation could limit the scope for the Federal Reserve (Fed) to cut interest rates further remain supportive of elevated US Treasury bond yields, albeit do little to hinder the Gold price's ongoing positive momentum.
Source: Fxstreet