Gold Prices Hit New Highs Above $2,400 But Rally Faces Long-Term Sustainability Questions

Gold prices have rallied over 17% since mid-February, reaching new record highs near $2,430 despite a stronger US dollar and higher interest rate expectations

Geopolitical tensions between Iran and Israel have further supported gold recently, though they haven't been a consistent driver of the price surge

The relentless rise could be fueled by speculative momentum and trend-following behavior that may be unsustainable long-term

Some investors may be betting inflation will rebound after initial Fed tightening, which would benefit gold in the long run

Prices pulled back from the recent peak but remain in overbought territory; $2,430 is resistance in the near term, with support at $2,305 and $2,260 on further weakness