Gold price recovers early lost ground; holds steady near record high amid trade war fears

• Gold price attracts some dip-buying as trade war fears continue to underpin safe-haven assets. 
• Fed rate cut bets keep the USD bulls on the defensive and further lend support to the XAU/USD.
• A positive risk tone might cap the commodity as traders await the release of the FOMC minutes. 

Gold price (XAU/USD) reverses an intraday dip to the $2,924 area and climbs to the top end of its daily range, closer to the all-time peak heading into the European session on Wednesday. Investors remain worried that US President Donald Trump’s tariff plans could trigger a global trade war, which continues to act as a tailwind for the safe-haven bullion. Moreover, expectations that the Federal Reserve (Fed) will cut interest rates further keep the US Dollar (USD) bulls on the defensive and offer additional support to the non-yielding precious metal.

Traders, however, seem reluctant to place fresh bullish bets around the Gold price and opt to wait for the release of the FOMC meeting minutes, which should provide fresh cues about the future rate-cut path and influence the USD. Apart from this, the optimism over a delay of Trump’s reciprocal tariffs and talks aimed at ending the protracted Russia-Ukraine war could further contribute to capping gains for the commodity. Nevertheless, the fundamental backdrop suggests that the path of least resistance for the XAU/USD pair remains to the upside.