The US Dollar staged a goodish bounce from the 2024 low touched the previous day amid rebounding US Treasury bond yields and drove flows away from the Gold price on Thursday.
The attempted USD recovery lacks follow-through in the wake of bets for an imminent start of the Federal Reserve's rate-cutting cycle in September, which helps limit losses for the XAU/USD.
On the economic data front, the US Department of Labor (DoL) reported that Initial Jobless Claims rose to a seasonally adjusted 232,000 in the week ending August 17, up from the 228K previous.
This follows the annual benchmark review of employment data released on Wednesday, which showed that US employers added 818,000 fewer jobs than reported during the year through March.
Moreover, the minutes of the July 30-31 FOMC meeting revealed that an increasing number of policymakers backed the case for a rate cut next month amid progress in bringing down inflation.
The S&P Global flash PMI indicated that business activity in the US manufacturing sector shrank at the fastest pace this year, while the gauge for the services sector unexpectedly ticked higher.
The composite PMI showed that the business activity in the US private sector continued to expand at a healthy pace and a fall in selling price inflation to a level close to the pre-pandemic average.
Kansas City Fed President Jeffrey Schmid said that there is still work to do on sustainably getting inflation back to 2% and that he needs to see more data before supporting the decision to reduce rates.
Philadelphia Fed President Patrick Harker said that jobs market revisions weren't a surprise and that he was on board with a September interest rate cut as long as the data performs as expected.
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