Gold price attracts buyers on Thursday and snaps a two-day losing streak from over a one-month low.
A generally weaker risk tone offers some support to the safe-haven metal amid a modest USD downtick.
Diminishing odds for a March Fed rate cut to act as a tailwind for the buck and cap any further gains.
Gold price (XAU/USD) gains some positive traction on Thursday and for now, seems to have snapped a two-day losing streak to the $2,000 psychological mark, or over a one-month low touched the previous day. The precious metal sticks to its modest gains through the early European session amid the flight to safety, bolstered by geopolitical tensions and worries about a weak economic outlook for China. Apart from this, a modest US Dollar (USD) downtick turns out to be another factor benefitting the commodity, though the intraday uptick lacks bullish conviction.
The upbeat US Retail Sales released on Wednesday pointed to a resilient economy and gives the Federal Reserve (Fed) more headroom to keep interest rates higher for longer. This remains supportive of elevated US Treasury bond yields, which should act as a tailwind for the USD and cap any meaningful upside for the non-yielding Gold price. Hence, it will be prudent to wait for strong follow-through buying before confirming that the XAU/USD has bottomed out in the near term and positioning for further gains. Traders now look to the US economic docket, featuring Initial Jobless Claims, the Philly Fed Manufacturing Index and housing market data, and Atlanta President Raphael Bostic's speech for some impetus.
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