Gold prices surged to unprecedented levels, reaching an all-time high of $2,276 late in the North American session, fueled by escalating geopolitical risks and rising US Treasury yields. Positive US economic data spurred a flight to safe-haven assets, further boosting the precious metal. XAU/USD is currently trading at $2,280, showcasing a substantial 1% gain.

Geopolitical Risks Stoke Demand for Safe Havens

Israel’s recent attack on an Iranian embassy in Syria on April 1st escalated geopolitical tensions, contributing to Gold’s bullish momentum despite a concurrent rise in US yields and a strong US Dollar.

Additionally, positive US economic releases painted a picture of a robust labor market. The Bureau of Labor Statistics (BLS) report showed rising job vacancies, while the US Census Bureau reported improving Factory Orders. Meanwhile, comments from Federal Reserve officials, including Cleveland Fed President Loretta Mester and San Francisco Fed President Mary Daly, also crossed the wires.

Technical Outlook: Gold Eyes $2,300

The XAU/USD daily chart signals continued upward momentum towards the $2,300 mark, bolstered by a bullish Relative Strength Index (RSI) that has surged above 80.00, indicating strong buyer dominance.

With prices exploring uncharted territory, immediate resistance lies at $2,300, followed by the psychological barrier of $2,350. The next potential target is $2,400.

Conversely, a dip below $2,250 could trigger a short-term correction. Initial support levels reside at $2,200, then the March 8th high turned support at $2,195, with further downside potential towards $2,150.