Gold price struggles to gain any meaningful traction amid mixed fundamental cues.
The Fed’s less hawkish outlook drags the USD to a multi-week low and lends support.
Bets for a delayed Fed rate cut and a positive risk tone cap gains ahead of the US NFP.
Gold price (XAU/USD) remains on the defensive during the Asian session on Friday, albeit manages to hold its neck above a nearly one-month low touched earlier this week. Traders opt to wait on the sidelines ahead of the release of the closely watched US monthly jobs data, popularly known as the Nonfarm Payrolls (NFP) report, for cues about the Federal Reserve's (Fed) rate-cut path and before placing fresh directional bets. Heading into the key data risk, a combination of diverging forces fails to provide any meaningful impetus to the precious metal, which is seen extending its consolidative price move in a multi-day-old trading range.
Despite still-sticky inflation in the US, Fed Chair Jerome Powell ruled out the possibility of any further interest rate hikes. This, in turn, drags the US Dollar (USD) to a three-week low and acts as a tailwind for the non-yielding Gold price. The Fed, however, indicated that it is in no hurry to cut rates in the near term. Apart from this, the prevalent risk-on environment – as depicted by a generally positive tone around the equity markets – holds back traders from placing fresh bullish bets around the safe-haven XAU/USD. Hence, a sustained break through a short-term trading range is needed to determine the near-term trajectory for the metal.
