Gold price surges further past $2,250, hitting a new all-time high amid June Fed rate drop predictions.

The gold price (XAUUSD) rose for the fifth day in a row on Monday. Breaking through the $2,250 barrier during the Asian session. The US Personal Consumption Expenditures (PCE) Price Index, issued on Friday, showed. That inflation climbed marginally in February, reinforcing expectations that the Federal Reserve (Fed) will begin its rate-cutting cycle in June. This, in turn, is observed as a significant factor benefiting the non yielding yellow metal. Aside from that, geopolitical uncertainties from the extended Russia-Ukraine war. And Middle Eastern conflicts provide additional support for the safe-haven commodity.

The risk-on mindset and a minor USD increase do little to impede the steady uptrend.

The aforementioned supporting reasons, to a greater extent, outweigh the prevailing risk on sentiment. Which tends to erode the gold price. Even the advent of some US Dollar (USD) drop buying does little to change the underlying strong bullish tone surrounding the XAUUSD pair. This, in turn, validates Friday’s burst through the previous all time high, around $2,223, and indicates. That the precious metal’s path of least resistance is to the upside. Traders now look to the release of the US ISM Manufacturing PMI for some momentum. Although the focus remains. The US monthly jobs statistics, or the NFP report, is due out on Friday.

Daily Market Movers: Gold price continues to receive support from June Fed rate decrease bets.

The important US inflation data announced on Friday opens the door for the Federal Reserve to drop interest rates in June. And continues to drive flows towards the non yielding gold price.
The US Bureau of Economic Analysis said on Friday that the Personal Consumption Expenditures (PCE) Price Index increased 0.3% in February. Raising the annual rate to 2.5% from 2.4%.
Moreover Excluding volatile food and energy costs, the core PCE Price Index,. The Fed’s preferred inflation indicator, increased by 2.8% year on year, compared to an upwardly revised 2.9% figure in January.
Following the Fed Chair Jerome Powell stated in the release. That the most recent US inflation data is consistent with our expectations. Reinforcing wagers on an impending shift in the Fed’s policy stance.
Furthermore According to the CME Group’s FedWatch Tool. Market participants are now pricing in a 70% chance that the Fed will start reducing interest rates at its June monetary policy meeting.

Russia accelerates its attacks on Ukraine’s energy and other infrastructure.

Russia accelerates its attacks on Ukraine’s energy. And other infrastructure in reaction to recent Ukrainian long range drone strikes on oil industry sites deep within its borders.
Hamas claims that the Israeli military is committing a war crime by establishing so-called kill zones throughout the Gaza Strip. Where any approaching Palestinian may be shot and killed.
The global risk sentiment receives an Boost from optimistic Chinese figures released on Sunday show that economic activity in the manufacturing sector has increased for the first time in six months.
This, along with a minor US Dollar increase, may curb gains for the safe-haven precious metal as traders now look to the US ISM Manufacturing PMI for short-term stimulus.