Gold (XAU/USD) prices continued to edge higher during the Asian session on Wednesday and climbed to fresh all-time peaks, around the $2,858 region in the last hour. Concerns about the economic fallout from US President Donald Trump’s trade tariffs continued to support demand for the safe-haven bullion . Moreover, expectations that the Federal Reserve (Fed) will maintain its easing cycle, supported by signs of slowing momentum in the US jobs market, contributed to driving flows towards the non-yielding yellow metal.
Meanwhile, the US Dollar (USD) languished near weekly lows amid prospects of further policy easing by the Fed and turned out to be another factor that extended support to Gold prices. That said, Trump’s decision to delay tariffs on Canada and Mexico continued to support the risk-on sentiment , which could cap gains for XAU/USD amid slightly overbought conditions on the daily chart. Hence, it would be prudent to wait for a near-term consolidation or a modest pullback before positioning for an extension of the recent upward trajectory. Traders now eye the US ADP report on private sector employment and the US ISM Services PMI for some impetus.