Gold price (XAU/USD) attracts fresh sellers during the Asian session on Friday and moves away from the all-time peak touched the previous day, though the downside potential seems limited.
The US Dollar (USD) attracts buyers for the third successive day and is currently placed near the weekly high, which, in turn, is seen as a key factor exerting pressure on the commodity. Adding to this, bulls opt to take some profits off the table heading into the weekend, especially after the recent historic run.
However, bets that the Federal Reserve (Fed) will resume its rate-cutting cycle should cap the USD gains and act as a tailwind for the non-yielding Gold price.
Furthermore, investors remain concerned about US President Donald Trump's aggressive trade policies and their impact on the global economic outlook.
This, along with geopolitical risks stemming from conflicts in the Middle East and the Russia-Ukraine war, should contribute to limiting any further losses for the safe-haven bullion.
Source: Investing.com
