Gold price sits near record high; to hit $3,400 amid weaker USD

Gold price (XAU/USD) maintains its strong bid tone through the first half of the European session on Monday and currently trades near the all-time peak, just below the $3,400 mark. The severe nature of US President Donald Trump’s international trade policies has raised the possibility of a US recession, which continues to weigh on investors’ sentiment and benefits the safe-haven precious metal.

Meanwhile, Trump’s back-and-forth tariff announcements have dented confidence in the world’s largest economy. This, along with the prospects for more aggressive policy easing, drags the US Dollar (USD) to its lowest level since April 2022 and further underpins the non-yielding Gold price. The XAU/USD bulls, however, might pause for a breather amid overstretched conditions on short-term charts.