Gold Price Hangs Near Weekly Low Ahead of US GDP

SEATTLE (Scrap Monster): Gold price (XAU/USD) struggles to capitalize on its modest intraday uptick on Thursday and languishes near the weekly low touched the previous day.

The downside, however, seems limited as traders might opt to wait for the release of the Advance US Q4 GDP growth figures for cues about the Federal Reserve's (Fed) timeline for interest rate cuts, which will influence the non-yielding yellow metal.

Heading into the key data risk, the US Dollar (USD) bulls remain on the defensive, which could further lend some support to the commodity. 

Apart from this, the risk of a further escalation of geopolitical tensions in the Middle East might turn out to be another factor acting as a tailwind for the safe-haven Gold price.

That said, reduced bets for a more aggressive policy easing by the Fed and an early interest rate cut remain supportive of elevated US Treasury bond yields, which should cap the precious metal.

The mixed fundamental backdrop warrants some caution before placing aggressive directional bets ahead of the US Personal Consumption Expenditures (PCE) Price Index on Friday. 

Courtesy: www.fxstreet.com