Gold price advances to a fresh record peak amid rising bets for a June Fed rate cut.
The risk-on mood and a modest USD uptick do little to hinder the strong move up.
The overbought RSI on the daily chart warrants some caution for aggressive bulls.
Gold price (XAU/USD) scales higher for the fifth successive day on Monday and touches a fresh record high, beyond the $2,250 level during the Asian session. The US Personal Consumption Expenditures (PCE) Price Index released on Friday indicated that inflation increased moderately in February and reaffirmed bets that the Federal Reserve (Fed) will begin its rate-cutting cycle in June. This, in turn, is seen as a key factor benefitting the non-yielding yellow metal. Apart from this, geopolitical risks stemming from the protracted Russia-Ukraine war and conflicts in the Middle East lend additional support to the safe-haven commodity.
The aforementioned supporting factors, to a larger extent, overshadow the prevalent risk-on mood, which tends to undermine the Gold price. Even the emergence of some US Dollar (USD) dip buying does little to dent the underlying strong bullish tone surrounding the XAU/USD. This, in turn, validates Friday's breakout through the previous all-time peak, around the $2,223 area, and suggests that the path of least resistance for the precious metal is to the upside. Traders now look to the release of the US ISM Manufacturing PMI for some impetus, though the focus remains glued to the US monthly jobs data, or the NFP report on Friday.
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