The price of gold (XAU/USD) continues its impressive bullish run, reaching the $2,400 mark, marking a fresh all-time high during the early European session on Friday. Investor apprehensions regarding geopolitical tensions in the Middle East have remained a significant driving force behind the sustained positive momentum. Additionally, anticipation of potential interest rate cuts by major central banks throughout the year has provided further support to the non-yielding precious metal.
Simultaneously, the US Dollar (USD) has surged to its highest level since November 14, buoyed by speculations suggesting that the Federal Reserve (Fed) may postpone interest rate cuts. This sentiment was bolstered by the release of hotter-than-expected US consumer inflation figures on Wednesday, which continue to underpin elevated US Treasury bond yields, thereby bolstering the USD.
Despite the strengthening US Dollar, the robust bullish sentiment surrounding the price of gold remains largely unaffected, indicating that the XAU/USD pair’s trajectory favors further upside movement.
