Gold price seems vulnerable while below $2,700 amid stronger USD, positive risk tone
Gold price met with a fresh supply and eroded a part of the overnight recovery gains.
The Trump trade optimism revives the USD demand and weighs on the precious metal.
Retreating US bond yields and bets for additional Fed rate cuts could help limit losses.
Gold price (XAU/USD) drops to the $2,680 area during the first half of the European session on Friday and is pressured by a combination of factors. Hopes that Trump's policies would spur economic growth and inflation, to a larger extent, overshadow the Federal Reserve's (Fed) dovish outlook, which, in turn, helps revive the US Dollar (USD) demand. Apart from this, a generally positive risk tone undermines the safe-haven precious metal.
Meanwhile, retreating US Treasury bond yields might hold back the US bulls from placing aggressive bets and help limit any further depreciating move for the non-yielding Gold price. Nevertheless, the XAU/USD, for now, seems to have stalled its goodish recovery from the 50-day Simple Moving Average (SMA) support, or over a three-week low touched on Thursday and remains on track to register losses for the second successive week.
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