Update XAUUSD
Gold price (XAU/USD) gains some positive traction during the Asian session on Friday and for now, seems to have snapped a two-day losing streak, to over a two-week low touched the previous day in reaction to the upbeat US macro data. The better-than-expected Advance US Gross Domestic Product (GDP) print released on Thursday was consistent with the view that the economy was holding up well. Additional details revealed that inflation slowed during the second quarter of 2024 and infused some stability in the financial markets, which, in turn, drove flows away from the traditional safe-haven precious metal.The XAU/USD, however, showed some resilience below the 50-day Simple Moving Average (SMA) amid expectations that the Federal Reserve (Fed) will start its rate-cutting cycle in September. This keeps the US Dollar (USD) depressed below a two-week high touched on Wednesday and assists the Gold price to attract some buyers. Meanwhile, the upside seems limited as traders prefer to wait for the release of the US Personal Consumption Expenditures (PCE) Price Index later this Friday for cues about the Fed’s policy path. This will drive the USD demand and provide a fresh impetus to the non-yielding yellow metal.
