Gold price eases from all-time peak; bullish potential seems intact
Gold price (XAU/USD) ticks lower during the Asian session on Tuesday and erodes a part of the previous day's gains to a fresh all-time peak. The US Dollar (USD) builds on the overnight bounce from its lowest level since December 10 and turns out to be a key factor undermining demand for the commodity. Apart from this, slightly overbought conditions on the daily chart further prompt traders to lighten their bullish bets around the precious metal, though the fundamental backdrop warrants some caution before placing aggressive bearish bets.
Meanwhile, investors remain worried about the potential economic fallout from US President Donald Trump's tariff plans, which might continue to support the safe-haven Gold price. Apart from this, bets that the Federal Reserve (Fed) would cut interest rates further this year should contribute to limiting the downside for the non-yielding yellow metal. Hence, it will be prudent to wait for strong follow-through selling before confirming that the XAU/USD pair has topped out in the near-term and positioning for any meaningful corrective decline.
Source: FXstreet