Gold rises for the second day in a row and pulls away from a multi-week low.

After the second consecutive day, gold price builds on the previous day’s goodish comeback from the $1,900 level. Or over a three-week low, and adds some follow-through impetus on Friday. The momentum propels the XAUUSD to a three-day high in the $1,915-$1,916 range. Throughout the Asian session, while any major appreciation remains elusive.

A slight US Dollar retracement from a six-month high is seen pushing flows to the Gold.

The US Dollar (USD) has retreated from its peak. Considered to be a major factor driving certain flows towards. The US Dollar-denominated gold price. USD’s decline might be attributable to profit-taking. Despite a little weaker tone around US government bond rates. However, rising hopes that the Federal Reserve (Fed) would hold interest rates higher for a longer period of time could benefit US bond yields and the Greenback.

Bets on another Federal Reserve rate rise and a favorable risk tone should limit the upside.

Incoming better US macro indicators speak to an exceedingly robust economy and strengthen the Fed’s chances for additional policy tightening. On Thursday, the US Census Bureau announced that retail sales climbed by 0.6% in August, above estimates for a 0.2% gain and the previous month’s downwardly revised figure of 0.5%. Furthermore, the US InitialJobless Claims increased less than predicted, to 220K in the second week of September, compared to 217K the prior week.

The US Bureau of Labor Statistics released the US Producer Price Index (PPI), which increased to 0.7% in August from 0.4% the previous month, and the annual rate increased to 1.6%, above expectations of 1.2% and 0.8% in July. This comes on top of the US CPI figure issued on Wednesday, which indicates that inflation remains sticky, allowing the Fed to maintain its hawkish posture. The hawkish outlook benefits USD bulls and should keep any major rises in the non-yielding Gold price in check.

Aside from that, a generally favorable risk tone, boosted by more Chinese stimulus, might push the market higher. contribute to limiting the safe-haven precious metal’s potential. Investors became more bullish when the People’s Bank of China (PBoC) reduced its Reserve Requirement Ratio for much of the banking sector by 25 basis points (bps), the second such reduction this year. This is likely to provide liquidity and perhaps boost growth in the world’s second-largest economy, alleviating recession concerns.

The aforementioned fundamental backdrop. Together with the recent collapse of a theoretically critical 200-day Simple Moving Average (SMA). Shows that the Gold price’s path of least resistance is to the south. As a result, any following move higher may still be viewed as a selling opportunity and may fizzle out fast. Traders are now looking to the US economic calendar. Which includes thePreliminary Michigan Consumer Sentiment Index and Empire State Manufacturing Index.