Gold price (XAU/USD) trades with a negative bias for the second straight day on Friday and slides back closer to the overnight swing low during the Asian session, though the downside remains cushioned. The US Dollar (USD) builds on the previous day's goodish recovery from a one-week low and gains some follow-through traction amid the optimistic outlook for the US economy. This, along with elevated US Treasury bond yields and the prevalent risk-on environment, are key factors exerting some downward pressure on the safe-haven precious metal.
That said, the Federal Reserve's (Fed) projection of a less restrictive policy stance, signalling that it remains on track to cut interest rates by 75 basis points this year, might cap gains for the Greenback. This, in turn, should act as a tailwind for the non-yielding Gold price and warrants some caution before positioning for any further pullback from the record peak touched on Thursday. Nevertheless, the XAU/USD remains on track to end in the positive territory for the fourth week in the previous five as traders look to Fed Chair Jerome Powell's speech for a fresh impetus.
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