XAU/USD breaks $3,500 resistance as gold hits record high in risk-off surge

XAU/USD surged 0.6% to breach the critical $3,500 resistance level, marking a new all-time high as September trading commenced with strong risk-off sentiment. The precious metal has finally broken out of its consolidation phase that began in late May, with buyers capitalizing on mounting global economic uncertainties and expectations of aggressive Federal Reserve rate cuts. Technical indicators show strong bullish momentum, with the breakout above the April high of $3,500 opening the path toward $3,550 and potentially $3,600 in the near term. The dollar's mixed performance hasn't deterred gold's advance, as investors prioritize safe-haven assets amid concerns over slowing global growth. Support now sits at the former resistance of $3,500, with $3,475 providing additional backing. Traders should monitor this breakout closely, as sustained trading above $3,500 could trigger accelerated buying from momentum-following algorithms and institutional investors.