Gold price stands tall near record high, overbought RSI warrants caution for bulls
- Gold price is underpinned by dovish Fed expectations and geopolitical tensions.
- The upbeat market mood does little to dent the underlying strong bullish tone.
- Traders await speeches by Fed officials and the US PCE data for a fresh impetus.
Gold price (XAU/USD) rallied to the $2,664-2,665 region on Tuesday, hitting yet another record high amid rising bets for a more aggressive policy easing by the Federal Reserve (Fed) and escalating geopolitical tensions in the Middle East. Meanwhile, dovish Fed expectations, along with Tuesday's disappointing US macro data, keep the US Dollar (USD) depressed near the YTD low set last week. This, to a larger extent, overshadows the latest optimism led by China's new stimulus measures and acts as a tailwind for the non-yielding yellow metal.
Bulls, however, take a breather during the Asian session on Wednesday amid slightly overbought conditions on the daily chart. Furthermore, investors seem reluctant to place aggressive bets as more Fed officials are set to speak this week, including the Fed Chair Jerome Powell on Thursday. Also this week, the focus will be on the release of the US Personal Consumption Expenditure (PCE) Price Index on Friday, which might influence expectations about the Fed's rate-cut path and determine the next leg of a directional move for the Gold price.
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