Gold price is up for the fourth day in a row and is close to a multi-week high.

The Gold price attracted some purchasing for the fourth consecutive day on Thursday, rising again over the $1,945 barrier during the Asian session, bringing it closer to a four-week high set the day before. The XAUUSD may now attempt to build on its recent rebound from its lowest level since March 13, around the $1,885 zone.

The looming economic threats boost the safe-haven Gold even more; a positive risk tone limits gains.

The US Dollar (USD) is hovering at a two-week low.Hit in the aftermath of the poor economic data given by the United States (US) on Wednesday and turns out to be a crucial element acting as a tailwind for the Gold price. In reality, Automatic Data Processing (ADP) revealed that private sector firms in the United States added 177K jobs in August, well below the previous month’s downwardly revised figure of 324K and falling short of forecasts for a reading of 195K. In addition, the second estimate revealed that the US economy increased at a 2.1% annualized rate in the second quarter, down from the 2.4% growth recorded previously.

Against the backdrop of the Conference Board’s Consumer Confidence Index dropping from 114.0 to 106.1 in August, the data confirms market predictions that the Federal Reserve would raise interest rates. In September, the Federal Reserve will stop its rate-hiking cycle. This sustains pressure on US Treasury bond rates, keeping USD bulls on the defensive and benefiting the non-yielding gold price. Aside from that, concerns of a worse global economic crisis appear to be lending extra support to the safe-haven precious metal, while a favorable risk tone may hold any further rises in check, at least for the time being.

Bets that the Federal Reserve will pause in September weigh on and support the US Dollar.

Traders may also opt to sit out the publication of the US PCE Price Index – the Fed’s favored inflation indicator – later in the early North American session. The markets are still pricing in a 25 basis point (bps) hike by the US Federal Reserve. As a result, the data will affect expectations regarding the Fed’s rate-hike path, driving USD demand and providing further impetus to the US Dollar-denominated gold price. Barring a favorable surprise in US inflation statistics, the fundamental background implies that the XAUUSD’s path of least resistance is to the upside.