XAU/USD bulls cheer $1,965 breakout ahead of US GDP, ECB!

Gold Price (XAU/USD) remains on the front foot for the third consecutive day as bulls cheer a fresh weekly top ahead of some more top-tier data/events, after marking a bullish reaction to the Federal Reserve (Fed) Interest Rate Decision.

In doing so, the XAU/USD fails to justify the Fed’s 0.25% interest rate hike, as well as readiness for an interest rate increase in September, amid fears of a sooner end to the tightening spell. Additionally favoring the Gold price could be the recent improvement in China's industrial profits and cautious optimism in the equity markets, mainly due to the upbeat earnings of global tech giants like Meta and Alphabet.

Furthermore, hopes of witnessing softer readings of the first readings of the US Gross Domestic Product (GDP) Annualized for the second quarter (Q2), as well as the ECB’s inability to convince hawks, also seem to propel the XAU/USD price. Also important to watch will be the US Durable Goods Orders and monetary policy meeting announcements of the Bank of Japan (BoJ).

Above all, the easing fears of higher rates can keep the Gold buyers hopeful but a clear upside break of the $1,985 resistance confluence becomes necessary to stretch the bull’s dominance.