Gold price edges higher amid weaker USD and softer risk tone, focus remains on US GDP

• Gold price edges higher amid a modest USD downtick, albeit lacks follow-through. 
• A softer risk tone further lends support, though hawkish Fed expectations cap gains.
• Traders look to the US macro data before positioning for a firm near-term direction.

Gold price (XAU/USD) attracts some dip-buying in the vicinity of the $2,300 mark on Thursday and for now, seems to have snapped a three-day losing streak, though the upside potential seems limited. The US Dollar (USD) meets with a fresh supply and hangs near its lowest level in over a week. This, along with a slight deterioration in the global risk sentiment, lends some support to the safe-haven precious metal. Traders, however, might prefer to wait for more cues about the Federal Reserve’s (Fed) rate cut path before placing aggressive directional bets. 

Hence, the focus will remain glued to the key US macro data – the Advance Q1 GDP report due later today and the Personal Consumption Expenditures (PCE) Price Index on Friday. The latter will play a key role in influencing market expectations about the Fed’s future policy decisions, which, in turn, will drive the USD demand and provide some meaningful impetus to the Gold price. This makes it prudent to wait for strong follow-through buying before confirming that the corrective slide from the all-time peak has run its course and positioning for further gains. 

Daily Digest Market Movers: Gold price struggles to lure buyers as focus remains on key US macro data

• Investors await key US economic data for clarity about the timing when the Federal Reserve will start cutting rates, leading to subdued range-bound price action around the Gold price for the second straight day on Thursday.
• The first estimate, or the Advance US GDP report is due for release later today and is expected to show that the world’s largest economy grew by 2.5% annualized pace during the first quarter as compared to the 3.4% previous.
• The focus will then shift to the Fed’s preferred inflation gauge – the core Personal Consumption Expenditures (PCE) Price Index – on Friday, which will play a key role in determining the near-term trajectory for the XAU/USD. 
• The US Census Bureau reported on Wednesday that Durable Goods Orders climbed 2.6% in March as compared to the previous month’s downwardly revised 0.7% increase, while new orders excluding transportation rose 0.2%.
• This comes on the back of strong US consumer inflation figures and hawkish remarks by Fed officials, reaffirming bets that the central bank will not begin its rate-cutting cycle before September and capping the non-yielding metal.
• The global risk sentiment remains supported by easing concerns about a further escalation of geopolitical tensions in the Middle East, which is seen as another factor acting as a headwind for the safe-haven precious metal. 
• The US Dollar bulls seem reluctant to place aggressive bets and remain on the defensive ahead of important macro releases, offering some support to the XAU/USD and limiting any meaningful downside for now. 

Technical Analysis: Gold price bulls seem non-commited, could attract some sellers near $2,325 area

From a technical perspective, the Gold price now seems to have found acceptance below the 23.6% Fibonacci retracement level of the February-April rally, albeit showing some resilience below the $2,300 mark earlier this week. Moreover, oscillators on the daily chart – though have been losing traction – are still holding in the positive territory. Hence, it will be prudent to wait for some follow-through selling below the $2,300-2,290 area, or over a two-week low touched on Tuesday, before positioning for an extension of the recent pullback from the all-time peak. The subsequent downfall has the potential to drag the XAU/USD to the $2,260-2,255 area, or the 38.2% Fibo. level, en route to the $2,225 intermediate support and the $2,200-2,190 confluence, comprising the 50% Fibo. level and the 50-day Simple Moving Average (SMA). 

On the flip side, immediate resistance is pegged near the $2,325 area ahead of the overnight swing high, the $2,337-2,338 zone. A sustained move beyond could allow the Gold price to test the next relevant hurdle near the $2,350-2,355 region and climb further towards the $2,380 supply zone. This is closely followed by the $2,400 round figure and the all-time peak, near the $2,431-2,432 area, which if cleared will set the stage for an extension of the recent blowout rally witnessed over the past two months or so.