Gold price trades with modest gains, remains close to all-time peak touched on Wednesday

• Gold price attracts some dip-buying following the overnight pullback from the record high.
• Bets that the Fed will begin its rate-cutting cycle in September continue to act as a tailwind.
• A modest USD uptick, along with the risk-on environment, might cap further intraday gains.

Gold price (XAU/USD) ticks higher during the Asian session on Thursday and for now, seems to have stalled its retracement slide from a fresh record high touched the previous day. The precious metal currently trades just above the $2,460 level, though a combination of factors might keep a lid on any meaningful intraday appreciating move.

The US Dollar (USD) attracts some buyers and reverses a part of the previous day's heavy losses to a nearly four-month low in the wake of a modest uptick in the US Treasury bond yields. This, along with the prevalent strong bullish sentiment across the global equity markets, could act as a headwind for the safe-haven Gold price. The near-term bias, however, seems tilted firmly in favor of bullish traders. 

Investors now seem to have fully priced in a 25-basis point (bps) interest rate cut by the Federal Reserve (Fed) in September. Moreover, market participants expect the US central bank to lower borrowing costs again in December in the wake of cooling inflationary pressures. This should cap the upside for the US bond yields and the USD, which, in turn, might continue to benefit the non-yielding Gold price.