Gold price hits all-time high at $2,956 as trade uncertainty lingers

• Gold climbs as Trump's trade policies fuel investor uncertainty.
• US 10-year Treasury yield dips slightly, providing a tailwind for bullion.
• Overbought conditions suggest bulls may face exhaustion near record levels.

Gold's price rose to a new record high of $2,956 in early trading on Monday during the North American session as the Greenback stayed firm and US yields remained virtually unchanged.

XAU/USD extends rally despite firm US Dollar and stable yields

Uncertainty keeps bullion prices underpinned as investors consider trade policies proposed by US President Donald Trump. It is the last week of February, and we should see tensions rising within the US, Canada, and Mexico after Trump delayed tariffs. Countries agreed to cooperate with the US in stopping fentanyl traffic and illegal immigration.

The US 10-year Treasury note yield has tumbled one basis point to 4.443%, a tailwind for the precious metal. US Real yields, as measured by the yield in the US 10-year Treasury Inflation-Protected Securities (TIPS), stay firm near 2.017%.

Last Friday, business activity data in the United States (US) was mixed, with the S&P Global Manufacturing PMI expanding while the Services PMI shrank. Also, inflation expectations rose, and consumer sentiment deteriorated, revealed the University of Michigan (UoM)

Given the backdrop, XAU/USD is set to extend its gains, even though bulls seem exhausted, as depicted by oscillators that are overbought.

XAU/USD Price Forecast: Technical outlook

Gold's uptrend remains intact, but buyers would likely push prices steadily without aggressive movements. The Relative Strength Index (RSI) is overbought, which could cap XAU/USD's advance and pave the way for a retracement.

However, if XAU/USD climbs past the all-time high of $2,956, the next resistance would be $3,000. On the other hand, if bullion prices fall below the February 21 low of $2,916, XAU/USD could challenge $2,900 in the near term.