Gold prices (XAU/USD) experienced a pullback on Tuesday after reaching a new all-time high near $2,640. As the market heads into the European session, prices have slipped towards the lower end of their daily range. This decline is attributed to an increase in US Treasury bond yields, which has boosted demand for the US Dollar (USD), prompting some traders to take profits on the commodity amid slightly overbought conditions observed on the daily chart.
Despite the retreat, any significant corrective decline in gold prices appears limited due to mounting expectations for more aggressive policy easing by the Federal Reserve (Fed).
Additionally, ongoing geopolitical risks, political uncertainties in the US, and a pessimistic global economic outlook are expected to support the safe-haven appeal of gold. Traders are particularly focused on the upcoming speech by Fed Governor Michelle Bowman, which could provide fresh insights and further direction for the market.
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