Gold prices rise sharply and reach a new all time high.

Gold price (XAUUSD) pares some of its Intraday gains to a new record high set during the Asian session on Thursday. But remains in positive territory for the second straight day, trading around $2,200.

The Fed’s predicted three rate cuts this year weigh on the dollar and help gold.

The Federal Reserve (Fed) suggested that it remains on schedule to decrease interest rates by 75 basis points this year. Relieving market Concerns that the central bank will reduce its projected number of rate cuts to two due to persistently high inflation. This pulls the US Dollar (USD) away from a two week high reached on Wednesday. And continues to boost the non yielding yellow metal.

The pervasive risk on mindset encourages profit taking in somewhat overbought conditions.

However, the pervasive risk on atmosphere. As seen by an extension of the recent bullish run across global equities markets. Prevents traders from placing new bullish wagers on the safe-haven gold price. This, combined with overbought conditions on the daily chart. Helps to keep the precious metal under control and encourages profit taking at higher levels. Nonetheless, the fundamental background shows. That the path of least resistance for the XAUUSD remains to the upward. Warranting some caution before positioning for any significant In the near future, a corrective slump is expected.

Daily Market Movers: The gold price is strongly supported by the Fed’s rate-cut outlook and a weaker US dollar.

The Federal Reserve reaffirmed its prediction of three rate cuts this year on Wednesday. Weighing on the US Dollar for the second day in a row and lifting gold prices to a new all time high.
Policymakers now expect the US economy to grow at 2.1% this year, up from 1.4% earlier. With the unemployment rate predicted to fall to 4% by the end of the year, down from 4.1% in December.

The Personal Consumption Expenditures Price Index, excluding food and energy, is anticipated. To rise at a 2.6% rate by year-end, compared to the 2.4% increase in the previous year. Quarterly economic projections.
In the post-meeting press conference, Fed Chair Jerome Powell stated. That inflation is steadily declining on a rough road; recent high inflation readings have put officials on guard.
According to the CME Group’s FedWatch Tool, traders are now pricing in a 75% possibility that the Fed will start decreasing interest rates at its June policy meeting, up from 59% on Tuesday.
This results in a minor decrease in US Treasury bond yields, driving the US Dollar to a one-week low during Thursday’s Asian session and providing some support for the precious metal.
A slightly overbought condition on the daily chart drives some profit-taking at higher levels amid a positive tone in the equities marketplaces. Which tend to erode the safe haven. XAUUSD