USD has been under pressure

1) Gold is moving strongly as a safe-haven asset

Gold demand is being supported by geopolitical tension and risk-off sentiment, which typically pushes traders into safe assets like gold.

2) The US Dollar weakness is supporting gold

Gold is receiving strong upside pressure because the USD has been under pressure, which mechanically lifts XAUUSD (gold is priced in dollars).

3) A major unusual trigger: Fed independence concerns

Recent headlines about legal/political pressure on the Federal Reserve leadership increased uncertainty in markets, which boosted demand for gold and pushed it to record levels.

4) Traders are focused on upcoming US inflation data (CPI / PPI)

Gold is highly sensitive right now to expectations of future Fed rate cuts, and the next major catalyst is CPI and PPI.

Quick trader summary (XAUUSD)

• Bullish drivers: risk-off + geopolitical tension + weaker USD

• Main risk: CPI comes hotter than expected → yields up → gold may pull back

• Main upside trigger: CPI softer than expected → rate-cut odds rise → gold continues up