• Gold bounces off the psychologically important $2,300 level after another leg of selling. 
• The pair continues to be pressured by a higher-for-longer outlook on interest rates – data on Friday could be key.
• XAU/USD approaches the neckline for a potential topping pattern – if broken, a cascade down could result.  

Gold (XAU/USD) edges higher, trading just above $2,300 on Thursday, as short-traders take profit following the last down leg from the $2,330s. The yellow metal has been pressured by comments from Federal Reserve (Fed) officials – those tasked with setting interest rates in the US – who have consistently stated that more progress has to be made on bringing down inflation before they can consider cutting interest rates. 

Their reluctance to cut rates weighs on Gold because it makes the non-interest paying asset comparatively less attractive to investors.