• Gold Price defends two-week-old trading pattern of repeatedly bouncing off 100-DMA, edges higher of late.
• Downbeat United States statistics propel economic fears, weigh on Federal Reserve bets and underpin XAU/USD rise.
• Gold buyers cheer US Dollar Index’s second consecutive weekly loss ahead of next week’s FOMC.
• China inflation data can entertain XAU/USD traders ahead of next week’s key monetary policy meetings.

Gold Price (XAU/USD) remains on the front foot around the weekly high, making rounds to $1965 during early Friday morning in Asia, after rising the most in five weeks the previous day. It should be noted that a slew of the downbeat United States economics weighed on the Federal Reserve (Fed) bets and the US Dollar to underpin the bullish bias surrounding the XAU/USD. However, the cautious mood ahead of China’s inflation gauges for May, namely the Consumer Price Index (CPI) and Producer Price Index (PPI), prod the Gold buyers due to the Dragon Nation’s status as one of the world’s biggest XAU/USD consumers.

Gold Price cheers US Dollar weakness

Gold Price manage to post the biggest daily gains in more than a week after the sustained weakness in the United States economics raised dovish concerns about the Federal Reserve (Fed) and drowned the US Dollar the previous day.

United States Initial Jobless Claims jumped to the highest levels since October 2021 by rising to 261K in the week ended on June 02 versus 235K expected and 233K prior (revised). With this, the four-week average rose to 237.25K from 229.75K previous readings. Further, the Continuing Jobless Claims dropped to 1.757M in the week ended on May 26 from 1.794M prior (revised), compared to 1.8M market forecasts. Earlier in the week, the US ISM Services PMI, S&P Global PMIs and Factory Orders also printed downbeat outcomes and pushed back the Fed hawks while weighing on the US Dollar and favoring the Gold buyers.

Given the downbeat US data, Gold buyers appear mostly certain of witnessing no rate hike by the US Federal Reserve (Fed) interest rate hike in the next week’s Federal Open Market Committee (FOMC) monetary policy meeting. Additionally, the disappointing statistics also reduce the market’s bets on July rate lifts and drown the US Dollar, as well as add strength to the XAU/USD run-up.