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Gold prices (XAU/USD) surged to a new record high of around $2,522-$2,523 during the early European session on Tuesday. This rise is largely due to continued weakness in the US Dollar, as more people believe that the Federal Reserve will start cutting interest rates in September. This expectation is making gold, a non-yielding asset, more attractive to investors. Concerns about escalating geopolitical tensions in the Middle East and the ongoing Russia-Ukraine conflict are also driving up gold prices, as investors seek safe-haven assets. However, the overall positive market mood might limit further gains in gold. Many investors are waiting for more clarity on the Fed’s next moves before committing to further investments in gold. There’s also some optimism as negotiations in the Middle East are expected to resume this week. If these talks lead to a ceasefire, it could reduce regional tensions and make riskier investments more appealing to investors.