Gold price corrects further from the record high amid some follow-through USD buying.
September Fed rate cut bets should cap the USD and help limit losses for the XAU/USD.
The technical setup supports prospects for the emergence of dip-buying near $2,400.
Gold price (XAU/USD) prolongs its corrective decline from the record peak touched earlier this week and drifts lower for the third successive day on Friday. The US Dollar (USD) builds on the previous day's solid recovery from over a four-month trough, led by the post-ECB slump in the shared currency, and is seen as a key factor exerting downward pressure on the commodity. The downfall could further be attributed to some profit-taking, especially after the recent rally of over 6.5% since the beginning of this month.
Meanwhile, the initial jobless claims data released from the US on Thursday provided further evidence that the labor market is softening. This, along with signs of easing inflationary pressures, sets the stage for a September interest rate cut from the Federal Reserve (Fed), which, in turn, should act as a tailwind for the non-yielding Gold price. Apart from this, geopolitical tensions and central bank demand should help limit the downside for the precious metal, suggesting that any further decline could be seen as a buying opportunity.
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