Gold attracts some purchasers for the third day in a row, despite a lack of bullish conviction.

The gold price (XAUUSD) rises for the third day in a row on Thursday, but lacks follow-through and sits below the overnight swing high.

Fed rate cut bets keep USD bulls on the defensive while continuing to provide some assistance.

Fed Chair Jerome Powell’s comments bolstered market expectations that the central bank will decrease borrowing prices in September and again in December. This puts the USD bulls on the defensive, and turns out to be an important component, operating as a tailwind for the non-yielding yellow metal. Aside from that, continuous central bank buying, macroeconomic uncertainties, and geopolitical dangers all boost the XAUUSD.

The risk-on mindset limits the upside as traders anticipate the release of the US CPI report.

However, the current risk-on atmosphere may limit any major appreciation in the safe-haven Gold price. Traders may also refrain from taking aggressive wagers and instead wait for the newest consumer inflation data from the United States (US). The critical US CPI report will be closely watch for fresh clues about the Fed’s rate-cutting path, which should increase US Dollar (USD) demand and provide some major push to the commodities. However, the fundamental backdrop indicates that the path of least resistance for the XAUUSD The outlook is still positive.

Daily Market Movers: Gold price benefits from dovish Fed views and weaker USD.

Firm acceptance that the Federal Reserve (Fed) will begin its rate-cutting cycle in September and lower borrowing costs again in December continues to weaken the US Dollar, giving some support to the gold price.
Fed Chair Jerome Powell comments, in which he stated that the US remains on a path back to stable prices and that the central bank may contemplate neutral rates later in 2024 once inflation has made more progress, increased the bets.
Powell recognized some slowdown in the US economy, but he added that he continues to envisage a gentle landing, bolstering investors’ demand for riskier assets, which is seen as restraining the potential for XAUUSD is considered a safe haven.
Powell also underline. That the Fed remained dedicated to its 2% inflation target, making the recent US consumer inflation report more meaningful and discouraging traders from placing new optimistic bets on the metal.
The headline CPI predict to climb by 0.1% in June. With the annual rate slowing from 3.3% to 3.1%, while the Core CPI (excluding Food and Energy costs) is expected to remain stable at 3.4% YoY.
The critical inflation report will lay the groundwork for the Fed’s rate-cutting path, which should influence USD price dynamics and assist determine the next leg of a directional move for the non-yielding yellow metal.