Gold price has risen to a two-week high amid new USD dumping.

Gold price (XAUUSD) attracts follow-through purchasing and jumps to a two-week high near $2,375 during Thursday’s European session. Furthermore, the near-term bias remains in favor of bulls, following forecasts that major central banks will decrease borrowing costs to boost economic activity. Indeed, the Bank of Canada (BoC) on Wednesday decreased It cut its benchmark rate for the first time in four years, from a more than two-decade high, signaling concern about weakening economic growth. Furthermore, the European Central Bank (ECB) is likely to reduce interest rates for the first time since March 2016 at the conclusion of its June policy meeting later today.

Rising Fed rate cut bets decrease US bond yields and weigh on the dollar.

Meanwhile, markets are pricing in a higher likelihood of a rate cut by the Federal Reserve (Fed) amid evidence of a slowdown in the US economy. The expectations kept US Treasury bond yields near their lowest levels in over two months, preventing the US Dollar (USD) from building on its small comeback gains of the previous two days. This, combined with the persistent geopolitical Tensions from ongoing crises in the Middle East continue to act as a tailwind for the safe-haven gold price. Despite a number of supportive variables, the XAUUSD’s upside appears restricted as traders eagerly await the release of the US Nonfarm Payrolls (NFP) report on Friday.

Daily Market Movers: Gold price gains support from firming Fed rate drop predictions, but weaker USD.

Mixed US macro data issued on Wednesday reiterated predictions that the Federal Reserve will begin decreasing interest rates later this year, lowering US Treasury bond yields and helping the non-yielding gold price.
The Automatic Data Processing (ADP) announced that private sector employment in the United States expanded by 152K in May, compared to 173K expected and the previous month’s The reading was lowered downward to 188K (initially reported as 192K).
The Institute for Supply Management’s (ISM) Services PMI increased to 53.8 in May, the highest level since August and above consensus predictions of 50.8, although the Prices Paid sub-component fell to 58.1 from 59.2.
This, together with the softer US Personal Consumption Expenditures (PCE) Price Index on Friday, pointed to reducing inflationary pressures and brought US Treasury bond yields lower, providing some support for the yellow metal.
The benchmark 10-year US Treasury yield fell to a two-month low of 4.28%, while the yield on the rate-sensitive 2-year US government bond fell to 4.731%, amid concerns that official job statistics will fall short of forecasts.
The US Dollar reacted well to the data. However, a further drop in US Treasury bond yields bolstered the yellow metal and sent it to a new weekly high during the Asian session on Thursday.

Traders are looking on US jobless claims for a boost ahead of the NFP on Friday.

Traders are now looking forward to the release of the Weekly Initial Jobless Claims data from the United States for some momentum, while the attention will remain on the US monthly employment figures, or Nonfarm Payrolls (NFP), on Friday.