Gold eases from record peak as markets eye Powell’s speech
Gold (XAU/USD) is taking a breather on Tuesday after surging to a fresh all-time high near $4,179 earlier in the day as safe haven demand remains supported amid intensifying US-China trade tensions, dovish Federal Reserve (Fed) expectations, and growing uncertainties across major economies.
At the time of writing, XAU/USD is holding firm above $4,100 after a sharp intraday drop from record highs to $4,090. The move reflects profit-taking after an overextended rally, as traders trim positions to secure recent gains. However, the downside remains cushioned as fears of a prolonged trade standoff between the world’s two largest economies continue to dominate market sentiment.
Gold’s rally is showing no signs of slowing with the metal up more than 50% year to date and on track for its best year since 1979. The historic run is driven by expectations of two more interest rate cuts by the Fed this year, persistent geopolitical tensions, and steady central bank buying. Strong inflows into Gold-backed ETFs and recent political uncertainty in France and Japan have further boosted demand, keeping the metal’s record-breaking rally well supported.
Source : Fxstreet.com
