• Gold Price recovery eyes another battler with $1,930 hurdle ahead of key central bankers’ speeches at European Central Bank forum.
• Upbeat United States data, geopolitical fears from Russia limit US Dollar and prod XAU/USD bulls.
• China-inspired optimism, positioning for Federal Reserve Chairman Jerome Powell’s underpin Gold Price rebound.

Gold Price (XAU/USD) regains upside momentum, after snapping a two-day winning streak the previous day, as markets prepare for the key central bankers’ speeches at the European Central Bank (ECB) Forum in Sintra. Apart from that, the economic optimism backed by headlines from the US and China also underpins the XAU/USD rebound.

Gold Price recovers on economic optimism

Gold Price slips off the bear’s radar, after teasing them on Tuesday, as markets brace for top-tier central bankers' speeches amid the receding hopes of witnessing recession in the US and China, the world’s top-two economies.

On Tuesday, a slew of the US data allowed the US Dollar to pare intraday losses and bolstered economic optimism, which in turn allowed US President Joe Biden to rule out recession woes. The same recently underpinned the Gold Price rebound.

Notable among them were the Durable Goods Orders, Conference Board's (CB) Consumer Confidence Index and a few housing numbers. That said, US Durable Goods Orders marked a surprise growth of 1.7% for May versus -1.0% market forecasts and 1.2% prior (revised). Further, the US Conference Board's (CB) Consumer Confidence Index rose to 109.7 for June from 102.5 in May (revised from 102.3).

On the same line, US Housing Price Index rose to 0.7% in April from 0.5% previous readings (revised), versus 0.3% expected. Meanwhile, the S&P/Case-Shiller Home Price Index came in as -1.7% YoY for April, down from -1.1% prior but better than -2.6% market forecasts. Additionally, New Home Sales rose 12.2% MoM in May from 3.5% prior and 0.5% anticipated whereas the Richmond Fed Manufacturing Index improved to -7.0 in June compared to -15.0 prior and -10.0 expected.

Furthermore, China-linked optimism also underpins the Gold Price recovery due to the dragon nation’s status as one of the biggest XAU/USD customers.

Market sentiment improved the previous day on China news and favored the Gold buyers previously before the US data weighed on the XAU/USD. Notable among them were headlines suggesting that Asian lobbyists are advocating for easier rules for Chinese equities’ overseas listing and comments from Premier Li Qiang.

That said, Chinese Premier Li Qiang said on Tuesday, “China was still on track to reach its annual growth target of around 5.0% for the year.” The policymaker also added that China will introduce more pragmatic measures to expand domestic demand and stimulate market vitality.

Apart from that, the People’s Bank of China’s (PBoC) lower-than-expected fixing of the USD/CNY price, despite marking the fresh year-to-date top, also weighed on the US Dollar and favored the XAU/USD. On the same line was a Reuters piece that signaled that China's major state-owned banks reportedly sold US Dollars in the offshore spot foreign exchange market, as authorities sought to steam the recent slide in the Chinese Yuan