Gold Price Gains Traction, Investors Await US Data, Fedspeak for Fresh Catalyst

SEATTLE (Scrap Monster): Gold price (XAU/USD) trades with a positive bias on Thursday amid the absence of top-tier economic data releases at mid-week. However, multiple headwinds, such as the firmer US Dollar (USD) and the hawkish comments from the US Federal Reserve (Fed) are likely to cap the upside of the precious metal in the near term. 

On the other hand, the growth in global gold demand was mainly driven by strong over-the-counter market investment, persistent central bank purchasing, and rising demand from Asian buyers, including China and India, per the WGC's most recent report. Furthermore, the risk-averse environment and the uncertainties surrounding geopolitical tensions in the Middle East might boost traditional safe-haven assets like gold. 

Gold traders await some fresh catalysts. The US weekly Initial Jobless Claims is due on Thursday. Also, San Francisco Fed President Mary Daly, in the dovish wing of the US central bank, is set to speak later in the day. The dovish remarks from Fed officials might cap the downside of the gold price for the time being. 

Courtesy: www.fxstreet.com