Gold price attracts some buyers for the fifth successive day amid modest USD weakness.

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• Gold price attracts some buyers for the fifth successive day amid modest USD weakness.
• Geopolitical risks also benefit the safe-haven XAU/USD and remain supportive of the upward move.
• Elevated US bond yields could act as a headwind ahead of the key FOMC meeting minutes.

Gold price (XAU/USD) trades with a positive bias for the fifth successive day on Wednesday and is currently placed around the $2,030 level, or a one-week high touched the previous day. The said area coincides with the 50-day Simple Moving Average (SMA) and should act as a pivotal point as traders keenly await the release of the FOMC meeting minutes, due later during the US session. Investors will look for cues about the Federal Reserve’s (Fed) rate-cut path, which will play a key role in influencing the near-term US Dollar (USD) price dynamics and provide a fresh directional impetus to the non-yielding yellow metal.

In the meantime, growing acceptance that the Fed will lower rates by mid-2024 keeps the USD bulls depressed near its lowest level in over two weeks set on Tuesday and acts as a tailwind for the Gold price. Adding to this, geopolitical risks stemming from conflicts in the Middle East and the prolonged Russia-Ukraine war remain supportive of the bid tone surrounding the safe-haven precious metal. That said, the latest optimism led by hopes that additional stimulus from China will boost global growth and elevated US Treasury bond yields might hold back traders from placing fresh bullish bets around the XAU/USD.

From a technical perspective, sustained strength and acceptance above the 50-day SMA will set the stage for an extension of the recent recovery from the $1,984 region, or a two-month low touched last week. Given that oscillators on the daily chart have been gaining positive traction, the Gold price might then accelerate the positive move towards an intermediate hurdle near the $2,044-2,045 region en route to the $2,065 supply zone.

On the flip side, the $2,016-2,015 area could protect the immediate downside ahead of the 100-day SMA, currently pegged near just below the $2,000 psychological mark. Some follow-through selling, leading to a subsequent break through the $1,984 area, or the monthly low, will be seen as a fresh trigger for bearish traders. The subsequent downfall has the potential to drag the Gold price to the very important 200-day SMA support near the $1,965 region.

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