Gold price gains positive traction for the fourth successive day on Thursday.

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• Gold price gains positive traction for the fourth successive day on Thursday.
• Sliding US bond yields weigh on the USD and benefit the non-yielding metal.
• Geopolitical risks and China’s economic woes remain supportive of the move.

Gold price (XAU/USD) attracts some buying for the fourth straight day on Thursday and moves back closer to over a two-week high, around the $2,056 area touched the previous day. The US Dollar (USD) struggles to capitalize on Wednesday’s post-FOMC bounce from a one-week trough amid a further decline in the US Treasury bond yields. This, along with persistent geopolitical risks stemming from conflicts in the Middle East and China’s economic woes, turn out to be a key factor lending some support to the safe-haven commodity. That said, the Federal Reserve’s (Fed) less dovish outlook on rates might cap the non-yielding yellow metal.

Investors now look to Thursday’s rather busy economic docket, highlighting the release of the flash Eurozone consumer inflation figures and the US ISM Manufacturing PMI, for some meaningful impetus. Furthermore, the Bank of England’s (BoE) monetary policy decision might infuse some volatility in the markets. Apart from this, the US bond yields, the USD price dynamics and the broader risk sentiment might contribute to producing short-term trading opportunities around the Gold price. The market focus will then shift to the closely-watched US monthly employment details, popularly known as the Nonfarm Payrolls (NFP) report on Friday.

From a technical perspective, strength beyond the $2,040-2,042 supply zone could be seen as a fresh trigger for bulls. Moreover, oscillators on the daily chart have just started gaining positive traction and support prospects for additional gains. That said, any further move up beyond the overnight swing high, around the $2,056 area, is likely to confront some resistance near the $2,065-2,066 zone ahead of the $2,078-2,079 region or the YTD peak. Some follow-through buying should allow the Gold price to aim back towards reclaiming the $2,100 round figure and climb further towards the next relevant hurdle near the $2,020 area.

On the flip side, the 50-day Simple Moving Average (SMA), currently pegged near the $2,031-2,030 area, now seems to act as an immediate strong support and a key pivotal point. A convincing break below the said support could drag the Gold price to the $2,012-2,010 area en route to the $2,000 psychological mark. Some follow-through selling might shift the bias in favour of bearish traders and expose the 100-day SMA support near the $1,980 region, before the XAU/USD eventually drops to the very important 200-day SMA, near the $1,965-1,964 area.

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