Gold price is seen consolidating in a narrow trading band above the $2,000 mark on Friday.

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• Gold price is seen consolidating in a narrow trading band above the $2,000 mark on Friday.
• Rising US bond yields underpin the USD and cap the yellow metal amid a positive risk tone.
• Reviving bets for an early Fed rate cut and geopolitical risks lend support to the commodity.

Gold price (XAU/USD) struggles to build on the previous day’s positive move and oscillates in a narrow range above the $2,000 psychological mark during the Asian session on Friday. A modest uptick in the US Treasury bond yields helps revive the US Dollar (USD) demand, which, along with a generally positive tone around the equity markets, turn out to be key factors capping the upside for the safe-haven precious metal. That said, expectations that the Federal Reserve (Fed) will start cutting interest rates soon, bolstered by the weaker-than-anticipated US Retail Sales report released on Thursday, act as a tailwind for the non-yielding yellow metal.

Apart from this, the risk of a further escalation of geopolitical tensions in the Middle East might continue to lend some support to the Gold price. Even from a technical perspective, this week’s failure to find bearish acceptance below the 100-day Simple Moving Average (SMA) warrants some caution before positioning for any meaningful downside for the XAU/USD. Market participants now look forward to the US economic docket – featuring the Producer Price Index (PPI), Housing Starts and Michigan Consumer Sentiment Index. This, along with speeches by influential FOMC members, will drive the USD and provide some impetus to the commodity.

From a technical perspective, any subsequent move up is likely to confront some resistance near the $2,015 level. Some follow-through buying should allow the Gold price to test the 50-day SMA, currently around the $2,030 region. The latter should act as a key pivotal point, which if cleared decisively will set the stage for additional gains beyond the $2,044-2,045 intermediate hurdle, towards the $2,065 supply zone.

On the flip side, the 100-day SMA, currently around the $1,992-1,991 area, could act as immediate support ahead of the $1,984 region, or a two-month low touched on Wednesday. This is followed by the very important 200-day SMA, currently pegged near the $1,965 area, which if broken decisively will be seen as a fresh trigger for bearish trades. The Gold price might then accelerate the fall towards an intermediate support near the $1,952-1,950 zone en route to the November 2023 low, around the $1,932-1,931 region.

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