Gold steadies near $3,750 as markets eye US data and Fed commentary

• Gold steadies near $3,750, regaining momentum after Wednesday’s dip.
• Traders await the release of US Jobless Claims, the Q2 GDP revision, and Durable Goods Orders.
• Recent Fed remarks highlight a cautious stance, balancing inflation and labor market risks.

Gold (XAU/USD) steadies on Thursday, recovering from the previous day’s corrective pullback as markets gear up for a busy US economic calendar. At the time of writing, XAU/USD is trading around $3,750, supported by cautious positioning ahead of key economic data and a slate of Federal Reserve (Fed) speakers later in the day.

The latest leg higher comes after Gold hit a fresh all-time high of $3,791 on Tuesday, before retreating on Wednesday. Traders weighed the Fed’s cautious stance on the path of monetary policy easing, with the US Dollar (USD) regaining strength.

Recent remarks from Fed officials highlight the delicate balancing act of containing inflation while supporting employment, which explains their guarded approach to easing. Despite this, markets continue to anticipate another interest rate cut in October. At the same time, persistent geopolitical tensions and a supportive fundamental and technical backdrop are cushioning downside risks in Gold, keeping dip-buyers engaged.

Looking ahead, Thursday’s calendar features Weekly Initial Jobless Claims, the Q2 Gross Domestic Product (GDP) revision, and Durable Goods Orders, all of which are due at 12:30 GMT. However, the spotlight remains on Friday’s release of the Fed’s preferred inflation gauge, the core Personal Consumption Expenditures (PCE) Price Index, which is likely to provide clearer direction for monetary policy and Gold’s near-term trajectory.

Market movers: Gold holds range amid US Dollar strength and Fed watch

• Strong US Dollar and firmer Treasury yields weigh on Gold. The US Dollar Index (DXY), which tracks the Greenback's value against a basket of six major peers, is hovering around 97.87, close to the two-week highs reached on Wednesday, while US Treasury yields are edging higher across the curve.
• The Q2 GDP revision is expected to be 3.3%, unchanged from the previous estimate. Initial Jobless Claims are forecast at 235K, compared with 231K in the previous week. Durable Goods Orders for August are projected to fall 0.5%, after a 2.8% decline in July.
• Markets will parse remarks from Austan Goolsbee (Chicago Fed President), Jeffrey Schmid (Kansas City Fed President), John Williams (New York Fed President), Michelle Bowman (Fed Governor), Michael Barr (Fed Vice Chair for Supervision), Lorie Logan (Dallas Fed President), and Mary Daly (San Francisco Fed President).
• Speaking on Wednesday, San Francisco Fed President Mary Daly said she “fully supported” the Fed’s recent rate cut and that “moving forward, it is likely that further policy adjustments will be needed as we work to restore price stability while providing needed support to the labor market.” She added that the Fed’s projections “are not promises,” stressing the need to reassess policy as conditions evolve.
• Treasury Secretary Scott Bessent told Fox Business on Wednesday that rates “need to come down” and added he was “a bit surprised that the chair hasn’t signaled that we have a destination before the end of the year of at least 100 to 150 basis points. His remarks stand in sharp contrast to the Fed’s latest dot plot, which projected only another 50 bps of easing by year-end.

Technical analysis: XAU/USD stabilizes after pullback

XAU/USD is consolidating on the 4-hour chart after retreating from record highs, with immediate support aligned at Wednesday’s low of $3,717, followed by the $3,700 psychological level.

A deeper pullback could expose the 50-period Simple Moving Average (SMA) near $3,703 and the 100-period SMA at $3,657. On the upside, resistance is seen at $3,760-$3,765, with a breakout above this zone opening the door for a retest of the all-time high at $3,791.

The Relative Strength Index (RSI) is holding near 57, indicating that momentum has cooled from overbought territory but remains in neutral to positive territory.