GOLD PRICE TRADES NEAR FRESH RECORD HIGHS SUPPORTED BY SAFE-HAVEN BIDS

• Gold price clings to gains even though the upbeat US Manufacturing PMI has improved the appeal for the US Dollar.
• 10-year US yields rise further as traders pare Fed rate cut expectations for June.
• The US NFP report will guide the next big move for Gold.

Gold price (XAU/USD) trades close to fresh all-time highs near $2,260 in Tuesday’s European session. An improved safe-haven bid has empowered Gold to offset the impact of significant jump in the US Dollar, which was driven by the robust recovery in the United States Manufacturing PMI in March.

Gold seems not ready to surrender gains on expectations that February’s core Personal Consumption Expenditure Price Index (PCE) figure, the lowest in two years, will keep the Fed on track to cut interest rates three times this year.

Going forward, the Gold price could face pressure to maintain higher levels as US bond yields have extended their upside, with 10-year US Treasury yields up to 4.34%. The rise in yields came as investors scaled back their expectations that the Federal Reserve (Fed) will pivot to rate cuts in June. Higher yields on interest-bearing assets increase the opportunity cost of holding investments in non-yielding assets, such as Gold.

This week, investors will focus on the US Nonfarm Payrolls (NFP) for March, which will be published on Friday. The labor market data could give clues about when the Fed could start reducing interest rates. In Tuesday’s session, investors will focus on the US JOLTS Job Openings for February, which will be published at 14:00 GMT. US employers are anticipated to have posted fresh 8.74 million job openings, lower than 8.863 million in January.