• Gold price edges higher on Thursday and snaps a three-day losing streak to over a six-month low.
• The prevalent risk-off mood is seen as a key factor lending support to the safe-haven XAU/USD.
• Retreating US bond yields holds back the USD bulls from placing fresh bets and benefits the metal.
• Bets for one more Fed rate hike in 2023 should act as a tailwind for the USD and cap the upside.

Gold price (XAU/USD) attracts some haven flow on Thursday and for now, seems to have snapped a three-day losing streak to a six-and-half-month low, around the $1,873-1,872 zone touched the previous day. Furthermore, a modest downtick in the US Treasury bond yields holds back the US Dollar (USD) bulls from placing fresh bets and turns out to be another factor lending support to the precious metal.

Any meaningful recovery for the Gold price, however, remains elusive in the wake of rising bets for further policy tightening by the Federal Reserve (Fed), which should act as a tailwind for the USD and the US bond yields. The US central bank last week warned that stick inflation was likely to attract at least one more interest rate hike by the end of this year.  Moreover, the US economic resilience should allow the Fed to stick to its hawkish stance.

Hence, it will be prudent to wait for strong follow-through buying before confirming that the Gold price has formed a near-term bottom and positioning for any further gains. Traders might also prefer to wait on the sidelines ahead of the US Core PCE Price Index on Friday, which will provide fresh cues about the Fed’s future rate-hike path and provide a fresh directional impetus to the non-yielding yellow metal.

Daily Digest Market Movers: Gold price draws some support from the prevalent risk-off mood

• Gold price registered its biggest single-day fall in two months amid stronger US Dollar and surging US bond yields.
• Investors remain worried about China’s property sector and headwinds stemming from rapidly rising borrowing costs.
• Republican US House Speaker Kevin McCarthy on Wednesday rejected a stopgap funding bill advancing in the Senate.
• This brings the US government closer to its fourth partial shutdown in a decade and takes its toll on the risk sentiment.
• The US Dollar consolidates its recent strong gains to the highest level since November 2022 amid retreating US bond yields.
• Hawkish comments by Minneapolis Fed President Neel Kashkari lift bets for at least one more rate hike by the year-end.
• The better-than-expected US Durable Goods Orders data ensures that the Fed will keep interest rates higher for longer.
• Thursday’s US economic docket features the release of the final US Q2 GDP and the usual Weekly Initial Jobless Claims.
• The US Core PCE Price Index, due on Friday remains in focus for cues about the Fed’s future interest rate-hike path.

Technical Analysis: Gold price might struggle to register any meaningful recovery

Thursday’s modest uptick might be categorized as a technical bounce in the wake of a slightly oversold Relative Strength Index (RSI) on the daily chart. That said, the lack of any buying interest suggests that the path of least resistance for the Gold price remains to the downside. Hence, any subsequent move up might still be seen as a selling opportunity. Nevertheless, the XAU/USD remains vulnerable to prolong its downward trajectory towards the next relevant support near the $1,860-1,858 region en route to the $1,820 level.