Gold price attracts some dip-buying on Thursday and steadily climbs back closer to an eight-month high touched the previous day.
Currently placed around the $1,885 area, the Gold price seems poised to appreciate further amid hopes for a less aggressive policy tightening by the Federal Reserve (Fed). Investors seem convinced that the Fed will soften its hawkish stance and pause the current rate-hiking cycle amid initial signs of easing inflationary pressures. Hence, the market focus will remain glued to the release of the latest consumer inflation figures from the United States (US), due later during the early North American session.
Meanwhile, rising bets for smaller Fed rate hikes going forward keep the US Treasury bond yields depressed and continues to lend some support to the non-yielding Gold price. In fact, the yield on the benchmark 10-year US Treasury note languishes near a multi-week low and weighs on the US Dollar (USD). This is seen as another factor acting as a tailwind for the US Dollar-denominated XAU/USD and supports prospects for additional gains. Traders, however, might prefer to wait on the sidelines ahead of the key data risk.
From a technical perspective, the stage seems all set for a move towards reclaiming the $1,900 round-figure mark for the first time since May 2022. Some follow-through buying will be seen as a fresh trigger for bullish traders and open the doors for a further near-term appreciating move. On the flip side, any meaningful corrective slide now seems to find decent support near the $1,865-$1,860 strong resistance breakpoint. Sustained weakness below might prompt some technical selling and drag the Gold price to the $1,835-$1,833 horizontal support.
