Gold price retakes $2,900 mark amid safe-haven demand, bearish USD

• Gold price rebounds from a one-week low and draws support from a combination of factors.
• Global trade war fears and geopolitical risks continue to underpin the safe-haven commodity.
• Fed rate cut bets keep the USD depressed and further benefit the non-yielding XAU/USD pair.

Gold price (XAU/USD) climbs to a fresh daily top during the early European session and is now looking to build on its intraday positive move beyond the $2,900 round-figure mark. Persistent worries about the potential economic fallout from US President Donald Trump’s trade tariffs and geopolitical risk turn out to be key factors that continue to underpin the safe-haven bullion. Apart from this, the prevalent risk-off environment and sustained US Dollar (USD) selling further benefit the precious metal. 

Investors now seem convinced that a tariff-driven slowdown in US growth might force the Federal Reserve (Fed) to cut interest rates multiple times this year. This keeps the US Treasury bond yields depressed and the USD close to its lowest level since November, lending additional support to the non-yielding Gold price. It, however, remains to be seen if the XAU/USD pair can capitalize on the move up as traders might refrain from placing aggressive bets ahead of the US inflation figures this week.