XAUUSD LONG

Gold price (XAU/USD) ticks lower following an intraday uptick back closer to a one-month top touched the previous day and slides closer to the $2,042-2,040 resistance break point during the early European session on Friday. Growing acceptance that the Federal Reserve (Fed) will wait until the June policy meeting before lowering borrowing costs remains supportive of elevated US Treasury bond yields. This, along with the prevalent risk-on environment, turns out to be a key factor exerting some downward pressure on the non-yielding yellow metal.

The downside for the Gold price, meanwhile, seems cushioned in the wake of rising bets for an eventual rate cut by the Fed, bolstered by signs of easing inflation in the US. Nevertheless, the XAU/USD seems poised to post gains for the second straight week as investors look to key US macro data scheduled at the start of a new month, starting with the ISM Manufacturing PMI later today. Friday's US economic docket also features the revised Michigan Consumer Sentiment Index, which, along with Fed Speaks, should provide some impetus to the XAU/USD.