Gold price consolidates its recent gains to a one-month peak touched on Thursday.

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• Gold price consolidates its recent gains to a one-month peak touched on Thursday.
• Traders opt to wait on the sidelines ahead of the release of the critical US jobs report.
• A combination of factors lends support to the XAU/USD and favours bullish traders

Gold price (XAU/USD) oscillates in a narrow trading band during the Asian session on Friday and consolidates its weekly gains to a one-month peak touched the previous day. A generally positive risk tone, bolstered by reports that an Israel-Hamas ceasefire was in the works, turns out to be a key factor acting as a headwind for the safe-haven precious metal. Furthermore, traders opt to wait on the sidelines ahead of the release of the US monthly employment details, which might provide more cues on the Federal Reserve’s (Fed) policy path and provide a fresh impetus to the non-yielding yellow metal.

Heading into the key data risk, renewed fears over the health of regional US banks, geopolitical tensions and China’s economic woes might continue to act as a tailwind for the safe-haven Gold price. That said, a modest bounce in the US Treasury bond yields helps the US Dollar (USD) to stall the previous day’s sharp retracement slide from the highest level since December 13. This might hold back traders from placing fresh bullish bets around the US Dollar-denominated commodity and cap the upside. Nevertheless, the XAU/USD seems poised to register gains for the first week in the previous three.

From a technical perspective, bulls might now wait for some follow-through buying beyond the $2,065 area, or a one-month top touched on Thursday, before placing fresh bets. Given that oscillators on the daily chart have just started gaining positive traction, the Gold price could then accelerate the momentum towards the $2,078-2,079 region, or the YTD peak set in January. The subsequent move-up should allow the XAU/USD to aim back to reclaim the $2,100 mark and climb further towards the next relevant hurdle near the $2,020 area.

On the flip side, the $2,042-2,040 strong horizontal resistance breakpoint now seems to protect the immediate downside ahead of the 50-day Simple Moving Average (SMA), currently pegged near the $2,033-2,032 zone. A convincing break below the latter could drag the Gold price to the $2,012-2,010 area en route to the $2,000 psychological mark. Failure to defend the said support levels might shift the bias in favour of bearish traders and expose the 100-day SMA support near the $1,982 region, before the XAU/USD drops to the very important 200-day SMA, near the $1,965 area.

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