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Gold prices continue to hover near record highs, supported by expectations of further rate cuts from the Federal Reserve and a weakening US Dollar. Geopolitical risks and concerns over the US and China's economic outlook also provide tailwinds for the safe-haven asset. While global equities rally, limiting aggressive bullish moves, the overall sentiment remains positive for gold. The technical outlook indicates that gold may challenge resistance near $2,615, with downside protection around $2,550. Traders are closely watching US macroeconomic data and geopolitical developments for further direction.

Key Highlights

* Gold trades close to all-time high amid dovish Fed expectations.

* Fed’s rate cut weakens USD, boosting gold demand.

* Geopolitical tensions in the Middle East support safe-haven demand.

* Global equity rally limits significant gains in the short term.

* Technical resistance seen near $2,615, with support at $2,550.

Gold prices continue to trade near their all-time high, benefiting from a dovish outlook from the Federal Reserve and a weakening US Dollar. The Fed’s recent oversized rate cut, along with the prospect of more cuts in the future, has kept the USD bulls on the defensive, driving demand for the non-yielding yellow metal. Gold has also found support from persistent concerns over the economic health of both the US and China, the world’s two largest economies, and ongoing geopolitical risks, including conflicts in the Middle East and Russia-Ukraine war.

Despite these bullish factors, the global risk-on sentiment, reflected in the rally of global equities, has somewhat limited fresh upward momentum for gold. Traders are also weighing positive US macroeconomic data, such as stronger-than-expected labor market figures and an improved manufacturing index. Still, these gains haven't been enough to significantly shift sentiment, with investors continuing to seek the safety of gold amidst uncertainty.

Technically, gold remains poised to challenge key resistance near $2,615, the top of a short-term ascending channel. A break above this level could open the door for further gains. On the downside, support is seen around $2,550, with further protection near the $2,500 mark.

Finally

Gold remains well-supported amid Fed rate cut expectations and geopolitical risks, with key resistance at $2,615 and support around $2,550.

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