Gold price edges higher amid softer risk tone, eyes $2,400 on falling US bond yields

• A combination of supporting factors assists the Gold price to gain positive traction on Thursday.
• Fears of a US recession, geopolitical risks weigh on investors’ sentiment and benefit the precious metal.
• Dovish Fed expectations, sliding US bond yields undermine the USD and further lend support.

Gold price (XAU/USD) attracts some buyers during the Asian session on Thursday and for now, seems to have snapped a four-day losing streak. The market sentiment remains fragile amid concerns about an economic slowdown in China and a possible US recession. Apart from this, persistent geopolitical tensions stemming from the ongoing conflicts in the Middle East help revive demand for the safe-haven precious metal.

Meanwhile, Friday’s weak US employment report for July raised expectations for bigger interest rate cuts by the Federal Reserve (Fed). This, along with a fresh leg down in the US Treasury bond yields, keeps the US Dollar (USD) bulls on the defensive and acts as a tailwind for the non-yielding Gold price. Moreover, the recent bounce from the 50-day Simple Moving Average (SMA) supports prospects for a further appreciating move.

Daily Digest Market Movers: Gold price draws support from reviving safe-haven demand and sliding US bond yields

• This week's recovery across the global equity markets runs out of steam amid lingering concerns about a US recession and offers some support to the safe-haven Gold price during the Asian session on Thursday.
• Moreover, there are fears that the Iranian attack in retaliation to the assassination of Hamas chief Ismail Haniyeh in Tehran and the subsequent Israeli response could lead to a broader conflict in the Middle East. 
• Investors have fully priced in a 25-basis points rate cut by the Federal Reserve in September and have been speculating the possibility of a 50 bps rate cut amid worries about an economic downturn in the US.
• The expectations, meanwhile, trigger a fresh leg down in the US Treasury bond yields and caps on the recent US Dollar recovery from a multi-month low, which further underpins the non-yielding yellow metal.
• Traders now look to the usual Weekly Initial Jobless Claims data from the US for some impetus later today, though the focus remains glued to the US consumer inflation figures, due for release next Wednesday.

Technical Analysis: Gold price bulls seem to have the upper hand while above the 50-day SMA pivotal support

From a technical perspective, any further positive move beyond the $2,400 mark is likely to confront some resistance near the $2,410-2,412 supply zone. A sustained strength beyond might trigger a short-covering rally and push the Gold price to the $2,430 intermediate hurdle en route to the next relevant barrier near the $2,448-2,450 horizontal zone. Some follow-through buying should pave the way for a move towards retesting the all-time peak, near the $2,483-2,484 area touched in July. This is closely followed by the $2,500 psychological mark, which if cleared should set the stage for a further near-term appreciating move.

On the flip side, the Gold price might continue to attract buyers around the 50-day SMA support, currently pegged near the $2,368 region. The subsequent slide has the potential to drag the XAG/USD to last week's swing low, around the $2,353-2,352 zone, en route to the $2,344 area, or the 100-day SMA. Some follow-through selling below the latter will be seen as a fresh trigger for bearish traders and pave the way for deeper losses. Given that oscillators on the daily chart have just started gaining negative traction, the commodity might then accelerate the downfall towards the $2,300 round figure.