Bullion hit alltime high of 2,431.29 per ounce on Friday
US dollar, 10year US yield slip from their fivemonth highs
Market participants see U.S. rate cuts from September

April 17 Reuters Gold prices rose on Wednesday, to near recordhigh levels as risks of the Middle East conflict spreading to other regions brought safehaven flows into bullion, alongside shortterm support from falling U.S. dollar.

Spot gold rose 0.2 to 2,388.56 per ounce, as of 1138 GMT, nearing its alltime high of 2,431.29. U.S. gold futures fell 0.1 to 2,404.90.

The precious metal is heavily overbought from a technical perspective…but bulls are drawing strength from the overall uncertainty across markets with geopolitics overshadowing data and monetary policy expectations, said FXTM senior research analyst Lukman Otunuga.

Market participants are keeping a close eye on developments in the Middle East, particularly on Israel39;s response to Iran39;s attacks, while U.S. and its allies planned fresh sanctions against Iran.

Gold is traditionally used as a hedge against geopolitical and economic uncertainty. It has gained about 16 so far this year and more than 500 since October 7, the tipping point in the Middle Eastern conflict.

Otunuga suggests that while gold has largely remained uncorrelated with the U.S. dollar and Treasury yields in the current trend, it may still show shortterm responses to movements in both.

Both the dollar and the 10year Treasury yields eased from their fivemonth peaks,…