Gold price jumps to fresh all-time high amid geopolitical risks
- Gold price trades in positive territory in Monday’s Asian session.
- The US Fed rate cut and Middle East geopolitical risks continue to underpin the precious metal.
- The renewed US Dollar demand might cap the upside of the XAU/USD.
The Gold price (XAU/USD) reaches a record high on Monday, supported by a softer Greenback. The start of a monetary easing cycle of the Federal Reserve’s (Fed) and the expectation of deeper rate cuts this year might underpin the non-interest-bearing Gold price. Furthermore, the rising geopolitical tensions in the Middle East might lead to fresh allocation towards safe-haven assets like gold.
Looking ahead, traders will keep an eye on the flash reading of the US Purchasing Managers Index (PMI) data, which is due later on Monday. However, the stronger-than-expected outcome could lift the USD and weigh on the USD-denominated Gold price.
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