Gold price corrects further from the all-time high amid hawkish remarks by Fed officials.
Persistent geopolitical tensions should limit the downside for the safe-haven XAU/USD.
Traders might also refrain from placing aggressive bets ahead of the crucial US jobs data.
Gold price (XAU/USD) extends the previous day's modest pullback from the record peak and continues losing ground through the Asian session on Friday. The overnight hawkish remarks by Federal Reserve (Fed) officials assist the US Dollar (USD) in gaining some follow-through positive traction and moving away from a nearly two-week low, which is seen dragging the commodity lower for the second straight day. The downside for the precious metal, however, seems cushioned in the wake of geopolitical tensions stemming from conflicts in the Middle East, which tends to benefit traditional safe-haven assets.
Traders might also prefer to wait for more cues about the Fed's interest rate-cut path before placing fresh directional bets around the non-yielding Gold price. Hence, the focus will remain glued to the release of the crucial US monthly employment details, popularly known as the Nonfarm Payrolls (NFP) report, due later during the North American session. Any disappointment will further point to signs of a cooling labor market and strengthen the case for a June Fed rate cut. Such a development could trigger a fresh bout of USD selling and provide additional support to the yellow metal.
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