• Gold Price grinds higher after bouncing off the lowest level in three months.
• Pullback in United States Treasury bond yields, mixed US data weigh on US Dollar and propel XAU/USD.
• ECB rate hike versus hawkish Fed halt, China news also down US Dollar, favoring the Gold Price in turn.
• US Michigan Consumer Sentiment Index, Inflation expectations eyed for intraday XAU/USD directions.

Gold Price (XAU/USD) dribbles near $1,958-59 during early Friday after a volatile day that initially refreshed a multi-day low before bouncing off $1,924, as well as posted snapping the four-day losing streak. That said, the XAU/USD previously dropped to the three-month low as the US Dollar licked Federal Reserve (Fed) inflicted wounds amid hopes of July rate hike before cheering the USD weakness on downbeat data and market’s cautious optimism to recover from the lowest level since March.

Gold Price rebound relies on US Dollar weakness

Gold Price portrayed a perfect contrasting play with the US Dollar as the XAU/USD initially refreshed the monthly low on the greenback’s recovery amid hopes of July rate hike from the Federal Reserve (Fed) before downbeat US data weighed on the yields and the USD.

That said, the US central bank kept the benchmark interest rate unchanged at 5.0-5.25%, matching market expectations of pausing the multi-month-old hawkish cycle after 10 consecutive rate increases. However, the upbeat FOMC Economic Projections and Federal Reserve (Fed) Chairman Jerome Powell’s speech back the hawkish Fed bias surrounding the July meeting and weighed on the Gold Price on early Thursday, before bouncing off $1,924.

On the other hand, Thursday’s United States statistics haven’t been impressive and hence pushed back the July rate hike concerns, which in turn joined other risk-positive catalysts to weigh on the US Dollar and propel the Gold Price.

On Thursday, US Retail Sales growth marks an increase of 0.3% for May versus -0.1% expected and 0.4% previous readings while the Core readings, means Retail Sales ex Autos, matches 0.1% market forecasts for the said month, compared to 0.4% prior.

Further, NY Fed Empire State Manufacturing Index jumps to 6.6 in June versus -15.1 expected and -31.8 prior whereas Philadelphia Fed Manufacturing Index drops to -13.7 for the said month from -10.4 prior and compared to -14 market forecasts.

Additionally, US Industrial Production for May cools down to -0.2% against 0.1% estimated and 0.5% prior while Initial Jobless Claims reprints the upwardly revised figures of 262K for the week ended on June 09 versus 249K expected.

Apart from the US data, the European Central Bank’s (ECB) 25 basis points (bps) of interest rate hike and clues of more such moves ahead also weighed on the US Dollar.

Elsewhere, People’s Bank of China (PBoC) cut its one-year interest rate for the first time in 10 months, by 10 basis points (bps), which in turn unleashed hopes of more liquidity in the one of the world’s biggest Gold consumer and favor the metal price. It shold be noted that downbeat prints of China Retail Sales and Industrial Production and fears of labor problems in Beijing-based factories prod the XAU/USD bulls.

Amid these plays, market players portrayed an optimistic day with upbeat Wall Street performance and a steep fall in the US Treasury bond yields, not to forget the US Dollar Index (DXY) drop to the three-week low. The same offered the Gold Price the much-needed rebound to pare weekly losses inside a bullish chart pattern.