• Gold Price fades the previous day’s rebound below key resistances.
• Mixed China inflation, US Dollar’s consolidation and sluggish yields allow XAU/USD to pare consecutive second weekly gain.
• June Fed rate hike concerns are off the table but hints of July rate lift can weigh on the Gold Price.

Gold Price (XAU/USD) remains sidelined as bulls take a breather after rising the most in five weeks the previous day, staying on the way to posting the second consecutive weekly gain. It’s worth noting, however, that the XAU/USD is yet to cross the short-term key hurdles, despite the latest run-up, which in turn joins the looming Fed fears to prod the Gold buyers.

That said, the yellow metal rallied the previous day on the US Dollar’s slump, backed by downbeat employment and activity data. Adding strength to the XAU/USD run-up could be the optimism surrounding China. However, the recent disappointment from China’s headline inflation numbers and the market’s reassessment of the previously dovish concerns about the US Federal Reserve (Fed) seems to prod the Gold buyers.

Moving on, the Fed is almost certain to refrain from a rate hike in June but the latest hawkish surprises from the Reserve Bank of Australia (RBA) and the Bank of Canada (BoC) challenges the XAU/USD buyers amid fears of a hawkish move. Even if the Federal Open Market Committee (FOMC) refrains from a rate hike, the Gold price can witness a downside if the policymakers strongly confirm the rate hike in July and afterward.

Also read: Gold Price Forecast: XAU/USD looks set to cross $1,985 hurdle as softer US data weighs on US Dollar, yields