Gold price trades with modest gains near multi-day top, focus remains on US PCE Price Index

Gold price (XAU/USD) attracts some buyers for the second straight day on Friday and trades just below the overnight swing high heading into the European session. The US GDP report released on Thursday pointed to a significant loss of growth momentum at the start of 2024 and an unwelcome pickup in inflation, which, in turn, is seen as lending some support to the precious metal. The uptick, however, lacks bullish conviction amid the emergence of fresh US Dollar (USD) buying, bolstered by hawkish Federal Reserve (Fed) expectations.

Investors seem convinced that the US central bank will delay cutting interest rates amid still sticky inflation, which keeps the US Treasury bond yields elevated and helps revive the USD demand. Apart from this, a generally positive tone around the equity markets contributes to capping gains for the safe-haven Gold prices. Traders now look to the release of the US Personal Consumption Expenditures (PCE) Price Index for cues about the Fed's rate-cut path and determine the next leg of a directional move for the non-yielding yellow metal.