Gold buying interest remains unabated on the back of rising bets for a September Fed rate cut.
The US tariffs uncertainty, Fed independence worries, and geopolitics benefit the precious metal.
A modest USD bounce does little to dent the move up ahead of this week’s US macro releases.
Gold prolongs its uptrend for the sixth straight day and touches a fresh all-time peak, levels beyond the $3,500 psychological mark, during the Asian session on Tuesday. The growing acceptance that the Federal Reserve (Fed) will cut interest rates this month turns out to be a key factor that continues to drive flows towards the non-yielding yellow metal. Apart from this, US tariffs uncertainty and escalating geopolitical tensions turn out to be other factors underpinning the safe-haven bullion.
The aforementioned supporting factors, to a larger extent, offset a modest US Dollar (USD) uptick, which tends to undermine demand for the commodity. However, extremely overbought conditions on short-term charts warrant some caution for the XAU/USD bulls before positioning for any further gains. Investors might also opt to move to the sidelines ahead of this week's important US macro releases, scheduled at the start of a new month, including the Nonfarm Payrolls (NFP) report.
* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
