Gold price (XAU/USD) seesaws between tepid gains/minor losses through the early European session and consolidates its recent gains to over a one-month peak touched this Thursday. Growing acceptance that the Federal Reserve (Fed) will pause its rate-cutting cycle late this month assists the US Dollar (USD) to move away from a one-week low touched on Wednesday. This, along with the prevalent risk-on mood, turns out to be a key factors acting as a headwind for the safe-haven precious metal.

That said, signs of abating inflationary pressures in the US suggest that the Fed may not necessarily exclude the possibility of cutting rates further by the end of this year. This led to the overnight slump in the US Treasury bond yields, which might cap the USD and support the non-yielding Gold price. Moreover, uncertainties around Trump's tariff plan and its potential impact on global growth should help limit the downside for the commodity as traders look to the US macro data for a fresh impetus.

Source: FXstreet