Gold hits fresh record high; bulls not ready to give up despite overbought conditions

• Gold buying remains unabated during the Asian session amid a supportive fundamental backdrop.
• Rising Fed rate cut bets, trade uncertainties, and geopolitical risks continue to benefit the bullion.
• A modest USD uptick could cap gains amid extremely overbought conditions ahead of the US data.

Gold touches a fresh record high, around the $3,547 region, during the Asian session on Wednesday, though it struggles to build on the momentum as bulls seem reluctant amid extremely overbought conditions. Furthermore, some follow-through US Dollar uptick turns out to be another factor that acts as a headwind for the commodity.

The upside for the USD, however, seems limited in the wake of firming expectations that the Federal Reserve (Fed) will lower borrowing costs later this month. Moreover, traders are pricing in the possibility that the US central bank will deliver two 25 basis points (bps) rate cuts by the end of this year, which should continue to offer support to the non-yielding yellow metal.

Meanwhile, investors remain on edge amid persistent trade-related uncertainties and renewed geopolitical risks stemming from the escalating Russia-Ukraine conflict and tensions in the Middle East. This is evident from a generally weaker tone around the equity markets, which further backs the case for an extension of an over one-week-old uptrend in the Gold price.

Traders now look forward to the release of the US JOLTS Job Openings data for some impetus later this Wednesday. This week's US economic docket also features the release of the ADP report on private-sector employment and the ISM Services PMI on Thursday. The focus, however, will remain on the closely-watched US Nonfarm Payrolls (NFP) report, due on Friday.