Gold price continues with its struggle to gain traction and remains confined in range.

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• Gold price continues with its struggle to gain traction and remains confined in range.
• The uncertain Fed rate cut path is holding back traders from placing directional bets.
• Subdued USD demand and a positive risk tone also do little to provide any impetus.

Gold price (XAU/USD) extends its sideways consolidative price move heading into the European session on Thursday as traders remain uncertain about the timing and the likely pace of interest rate cuts by the Federal Reserve (Fed) this year. The incoming upbeat US macro data, along with the recent hawkish remarks by a slew of influential Fed officials, forced investors to scale back their expectations for more aggressive policy easing. This remains supportive of elevated US Treasury bond yields, which along with the prevalent risk-on environment, acts as a headwind for the safe-haven precious metal.

The US Dollar, however, struggles to lure buyers and languishes below its highest level in almost three months touched earlier this week amid expectations for an imminent shift in the Fed’s policy stance. This, in turn, is seen lending some support to the non-yielding Gold price amid persistent worries about slowing economic growth in China – the world’s second-largest economy. Traders also seem reluctant and prefer to wait for the US consumer inflation figures, due next week, which should provide fresh cues about the Fed’s future policy decisions and provide some meaningful impetus to the XAU/USD.

From a technical perspective, the $2,023-2,022 area is likely to protect the immediate downside ahead of the weekly low, around the $2,015 region. Some follow-through selling will expose the $2,000 psychological mark, below which the Gold price could accelerate the slide towards the 100-day Simple Moving Average (SMA), currently around the $1,986 zone. The downfall could extend further towards the very important 200-day SMA, near the $1,966-1,965 region.

On the flip side, the overnight swing high, around the $2,044-2,045 area, or the weekly top, now seems to act as an immediate hurdle ahead of the $2,054-2,055 zone and the $2,065 region, or last week’s swing high. Given that oscillators on the daily chart are holding in the positive territory, a sustained strength beyond should lift the Gold price towards the $2,078-2,079 area, or the YTD peak set in January. The subsequent move-up should allow the XAU/USD to reclaim the $2,100 mark and climb further to the next relevant hurdle near the $2,120 region.

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