With ‘buy the dips’ emerging as the main underlying theme behind the gold (XAU/USD) price action so far this week, the bulls flex their muscles further to record fresh all-time highs near $2040. The spot found solid support around $2010 level earlier in the Asian session after the profit-taking slide from the previous record high of $2031.20. The buyers saw it as a bargain-hunting opportunity, with $2050 on their radars. The record highs could be retested if the buyers regain control en route the critical $2050 psychological level.
Fundamentally, the yellow metal continues to draw support from the crumbling US inflated-protected Treasury yields on the narrative of faltering economic recovery from the coronavirus pandemic-induced massive GDP contraction. The falling US Treasury yields, both real and nominal, continue to exacerbate the pain in the US dollar. At the time of writing, the US dollar index trades near fresh monthly lows of 93.06, down 0.27% on a daily basis.