GOLD PRICE SITS NEAR RECORD HIGH AMID FIRMING FED RATE CUT BETS, GEOPOLITICAL RISKS

• Gold price stands tall near an all-time peak amid bets for a June Fed rate cut.
• The USD languishes near a month low and acts as a tailwind for the commodity.
• Geopolitical risks also benefit the safe-haven metal, though bulls seem reluctant.
• Overbought RSI on the daily chart warrants caution ahead of the NFP release on Friday.

Gold price (XAU/USD) built on its recent breakout momentum and touched a fresh all-time peak, around the $2,152 region on Wednesday amid expectations for an imminent shift in the Federal Reserve's (Fed) policy stance. The bets were reaffirmed by Fed Chair Jerome Powell's comments, saying that the central bank expects to reduce its benchmark interest rate later this year. Minneapolis Fed President Neel Kashkari, however, downplays speculations about more aggressive policy easing and assists the US Dollar (USD) to stall its recent decline to its lowest level since early February. This, in turn, keeps a lid on any further gains for the precious metal amid extremely overstretched conditions on the daily chart.

Meanwhile, any meaningful corrective decline in the Gold price seems elusive amid persistent geopolitical tensions. Apart from this, concerns about a slowdown in China – the world's second-largest economy – might continue to act as a tailwind for the safe-haven precious metal. Investors might also prefer to wait on the sidelines ahead of Powell's second day of testimony before the Senate Banking Committee and the release of the closely-watched US monthly employment details – popularly known as the Nonfarm Payrolls (NFP) report on Friday. In the meantime, traders on Thursday might take cues from the US Weekly Initial Jobless Claims data for short-term impetus later during the North American session.