Gold price advances beyond $2,772 hurdle, eyes multi-month top ahead of US GDP

• Gold price gains positive traction and climbs to a fresh weekly top on Thursday. 
• Sliding US bond yields keep the USD bulls on the defensive and lend support.
• The Fed’s hawkish pause and a positive risk tone might cap the XAU/USD pair. 

Gold price (XAU/USD) builds on its steady intraday ascent and climbs to a fresh weekly top, around the $2,773-2,774 region during the first half of the European session on Thursday. Despite the Federal Reserve’s (Fed) hawkish pause on Wednesday, the uncertainty about US President Donald Trump’s policies triggers a fresh leg down in the US Treasury bond yields. This, in turn, keeps the US Dollar (USD) bulls on the defensive and drives flows towards the non-yielding yellow metal.

Apart from this, persistent worries over the potential economic fallout from Trump’s trade tariffs turn out to be another factor underpinning the safe-haven Gold price. Meanwhile, the Fed indicated no immediate plans for rate cuts, which, so far, seems to act as a tailwind for the US Dollar (USD). Apart from this, a generally positive risk tone might hold back traders from placing fresh bullish bets around the XAU/USD ahead of the Advance US Q4 GDP report due later this Thursday. 

Gold price builds on intraday move up amid declining US bond yields

• The Federal Reserve held interest rates steady on Wednesday and signaled that there would be no rush to lower borrowing costs until inflation and jobs data made it appropriate.
• In the post-meeting press conference, Fed Chair Jerome Powell said that politics would not affect the central bank’s interest-rate calls and downplayed expectations for future rate cuts.
• Powell’s remarks reaffirmed the notion that rates will remain higher for longer amid caution over US President Donald Trump’s protectionist policies, which could reignite inflation.
• The yield on the benchmark 10-year US government bond struggles to build on the post-FOMC bounce from over a one-month low, capping the US Dollar and supporting the Gold price. 
• Investors remain concerned about the potential economic fallout from Trump’s trade tariffs and protectionist policies, which further underpin the safe-haven precious metal. 
• The highly-anticipated European Central Bank (ECB) monetary policy decision this Thursday could infuse some volatility in the markets and drive demand for the XAU/USD.
• The focus will then shift to the release of the closely-watched US Personal Consumption Expenditures (PCE) Price Index – the Fed’s preferred inflation gauge – on Friday.

Gold price remains on track to retest multi-month peak, around $2,786

From a technical perspective, the recent breakout through the $2,720-2,725 horizontal barrier and positive oscillators on the daily chart validate the near-term positive outlook for the Gold price. That said, it will still be prudent to wait for a subsequent strength beyond the $2,772-2,773 immediate hurdle before positioning for a move towards the $2,786 area, or the highest level since October 2024 touched last Friday. The momentum could extend further towards the all-time peak, near the $2,790 zone. Some follow-through buying, leading to a move beyond the $2,800 mark, will be seen as a fresh trigger for bulls and pave the way for an extension of a well-established uptrend witnessed over the past month or so.

On the flip side, weakness below the overnight swing low, around the $2,745-2,744 area could be seen as a buying opportunity but limited near the $2,730 region, or the weekly trough touched on Monday. This is followed by the $2,725-2,750 resistance-turned-support, below which the Gold price could accelerate the fall towards the $2,707-2,705 area en route to the $2,684 support zone.