Gold price surges to a record high of $2,956 amid ongoing trade uncertainty

• Gold rises as investor uncertainty grows over Trump’s trade policies, while a slight dip in the US 10-year Treasury yield supports bullion.
• However, overbought conditions indicate potential exhaustion for bulls near record highs.

Gold surged to a fresh all-time high of $2,956 in early Monday trading during the North American session, as the US Dollar held firm and Treasury yields remained largely steady.

Gold prices remain supported by uncertainty as investors weigh the trade policies proposed by U.S. President Donald Trump. As February draws to a close, tensions will escalate among the U.S., Canada, and Mexico following Trump’s decision to delay tariffs. In response, the three nations have agreed to collaborate with the U.S. to curb fentanyl trafficking and illegal immigration.

Meanwhile, the yield on the U.S. 10-year Treasury note has dipped by one basis point to 4.443%, providing a tailwind for the precious metal. U.S. real yields, measured by the yield on 10-year Treasury Inflation-Protected Securities (TIPS), remain firm near 2.017%.

Economic data released last Friday painted a mixed picture of U.S. business activity, with the S&P Global Manufacturing PMI showing expansion while the Services PMI contracted. Additionally, inflation expectations rose, and consumer sentiment weakened, as indicated by the University of Michigan (UoM).

Against this backdrop, XAU/USD appears poised to extend its gains, though upside momentum may be limited as overbought oscillators suggest bullish exhaustion.