Gold consolidates under geopolitical threats, with reduced predictions for a 50 basis point Fed rate drop.

On Thursday, the gold price (XAUUSD) attracted some dip-buying near $2,432 and rose more than 1.5% intraday over the danger of further unrest in the Middle East.

Easing US recession fears improve investor confidence and help to limit the metal

The precious metal, however, paused the intraday surge up near the $2,470 mark following the release of the positive US macro data, which soothed fears of a recession in the world’s largest economy and dashed hopes for a more aggressive policy easing by the Federal Reserve (Fed). This, in turn, pushed US Treasury bond yields higher and provided a modest boost to the US Dollar (USD). Aside from that, the risk-on rise in the US equity markets helped to contain gains for the commodity.
Nonetheless, the gold price closed with slight intraday gains, halting a two-day losing run, and remained over $2,450 into the Asian session on Friday. Investors remain persuaded that the Fed will begin its rate-cutting cycle in September. This limits any major gain for US bond yields and the USD, resulting in a tailwind for the non-yielding yellow metal. Traders are now looking at the second-tier US Data.
Later in the early North American session, look for short-term chances in macro data such as building starts and housing permits, as well as the Preliminary Michigan Consumer Sentiment Index.

Daily Digest Market Movers: Gold pricing struggles to attract buyers under a mixed fundamental background.

Persistent geopolitical worries resulting from ongoing hostilities in the Middle East and the protracted Russia-Ukraine war helped the safe-haven gold market regain some positive momentum on Thursday.
As a fresh round of Gaza ceasefire talks began in Doha, investors were concerned about Iran’s response to the assassination of Hamas leader Ismail Haniyeh in Tehran last month.
Russia said on Thursday that it would build up border fortifications, better command and control, and send in extra forces following Ukraine’s worst strike on its Since World War II, territories have been considered sovereign.
Retail sales increased more than expected in July, and the labor market remained resilient, soothing concerns about a dramatic recession in the world’s largest economy.
According to the US Census Bureau, overall retail sales in the United States increased by 1% in July, while sales ex-autos increased by 0.4%, exceeding expectations of 0.3% and 0.1% growth, respectively.

US Department of Labor (DOL) stated that there were 227K initial jobless claims in the week ending August 10.

Another data from the US Department of Labor (DOL) stated that there were 227K initial jobless claims in the week ending August 10, exceeding the projected 235K and the prior week’s 234K.
The markets reacted quickly and are now pricing in a higher likelihood. that the Federal Reserve will reduce borrowing costs by only 25 basis points at its next monetary policy meeting in September.
This, in turn, prompted a new leg higher in US Treasury bond yields and helped the US Dollar attract some major purchasing, limiting the upside for the non-yielding yellow metal.
The XAUUSD remained on track for small weekly gains as attention focuses to the FOMC minutes, which are due next Tuesday, and Fed Chair Jerome Powell’s presentation at the Jackson Hole Symposium.