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Gold price (XAU/USD) extends the rally to around $4,950 during the early Asian session on Friday. The precious metal gains momentum as geopolitical risk and threats to the US Federal Reserve’s (Fed) independence boost the safe-haven demand. 

The yellow metal is set to reach a fresh all-time high and is on track for a weekly gain of more than 7%. Traders flock to traditional safe-haven assets such as Gold after tensions in Venezuela, Iran and Greenland. 

Additionally, traders await US President Donald Trump's pick for the next Fed Chair to succeed Jerome Powell. A more dovish chair would increase bets on further interest-rate cuts this year, which could underpin the Gold price. Lower interest rates could reduce the opportunity cost of holding Gold, supporting the non-yielding precious metal.

On the other hand, hopes for a solution in Trump’s ambitions for Greenland could weigh on the precious metal. Trump said he would step back from imposing tariffs on goods from European nations opposing his effort to take possession of Greenland. He further stated that the US and the North Atlantic Treaty Organization (NATO) had formed the framework of a future deal with respect to Greenland.

“Gold may be pausing, but the bull market is very much intact — with rate‑cut expectations, persistent geopolitical tensions and strong central‑bank buying keeping the risk skewed firmly to the upside,” said Ewa Manthey, commodities strategist at ING Groep NV.

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