• Gold price plunged to over a two-week low in reaction to the upbeat US macro data on Thursday.
• September Fed rate cut bets keep the USD bulls on the defensive and help limit any further losses.
• Traders also prefer to wait for the release of the US PCE Price Index before placing directional bets.

Gold price (XAU/USD) witnessed heavy selling following the release of the upbeat US macro data and dived to its lowest level in over two weeks on Thursday. The Advance Gross Domestic Product (GDP) estimate showed that the US economy expanded at a faster-than-expected pace and that inflation slowed during the second quarter of 2024. This, in turn, suggested that the US economy is still holding up well and infused some stability in the financial markets, which, in turn, weighed on the traditional safe-haven precious metal.

The optimism keeps the Gold price on the defensive during the Asian session on Friday, though expectations for an imminent start of the Federal Reserve's (Fed) rate-cutting cycle help limit the downside. Traders also seem reluctant and prefer to wait for the release of the US Personal Consumption Expenditures (PCE) Price Index later this Friday before placing directional bets. The crucial inflation data will play a key role in determining the Fed's policy path, which, in turn, will drive the US Dollar (USD) and the non-yielding yellow metal.