GOLD PRICE REMAINS BELOW A KEY HURDLE AS TRADERS KEENLY AWAIT THE US PCE PRICE INDEX

• Gold price draws support from a softer risk tone and a modest US Dollar downtick.
• The upside remains capped amid the Fed’s higher-for-longer interest rates narrative.
• Bulls also seem reluctant to place aggressive bets ahead of the US PCE Price Index release.

Gold price (XAU/USD) ticks higher during the Asian session on Thursday and looks to build on the overnight modest bounce from the $2,025-2,024 area, or the weekly low. The precious metal, however, remains below the $2,040-2,042 strong horizontal barrier as traders keenly await the release of the US Personal Consumption Expenditures (PCE) Price Index. The crucial inflation data should provide fresh cues about the Federal Reserve's (Fed) rate-cut path, which, in turn, will play a key role in determining the next leg of a directional move for the non-yielding yellow metal.

Heading into the key data risks, the US Dollar (USD) bulls opt to wait on the sidelines, which, in turn, lends some support to the Gold price. Apart from this, a slight deterioration in the global risk sentiment further benefits the safe-haven precious metal, though expectations the Fed will keep rates higher for longer might keep a lid on any further gains. Hence, it will be prudent to wait for strong follow-through buying before traders start positioning for the resumption of the recent recovery move from the $1,984 region, or the YTD low touched earlier this February.