Gold price consolidates in a range below all-time peak ahead of Fed Chair Powell's speech

Gold price (XAU/USD) struggles for a firm intraday direction on Thursday and oscillates in a range below the all-time peak touched the previous day. Bets for another oversized interest rate cut by the US Federal Reserve (Fed) fail to assist the US Dollar (USD) to capitalize on the previous day's solid recovery from the vicinity of the YTD low and lend support to the non-yielding yellow metal. Apart from this, rising tensions in the Middle East and concerns over China's economic recovery, despite the latest stimulus plans, act as a tailwind for the safe-haven precious metal.

Bullish traders, however, seem reluctant and prefer to wait for more cues about the Fed's rate-cut path before placing fresh bets around the Gold price. Hence, the focus will remain glued to speeches by influential FOMC members, including Fed Chair Jerome Powell, which, in turn, will play a key role in influencing the near-term USD price dynamics. Apart from this, the US macro data – the final Q2 GDP print, the usual Weekly Initial Jobless Claims and Durable Goods Orders – should contribute to producing short-term trading opportunities around the XAU/USD.

Daily Digest Market Movers: Gold price looks to Fed Chair Powell's speech before the next leg up

• The US Dollar struggles to build on Wednesday's strong recovery gains amid dovish Federal Reserve expectations, which, in turn, continues to lend some support to the non-yielding Gold price. 
• Several Fed officials this week tried to push back against bets for a more aggressive easing, though the markets are pricing in a greater chance of a 50 basis points rate cut in November. 
• Hence, Fed Chair Jerome Powell's speech later this Thursday will be scrutinized closely for fresh cues about the future rate-cut path and to determine the near-term trajectory for the XAU/USD. 
• The US macro data – the final Q2 GDP print, the usual Weekly Initial Jobless Claims, Durable Goods Orders – and speeches by other influential FOMC members should also provide some impetus.
• Meanwhile, the latest optimism led by a new round of Chinese stimulus measures announced this week fades amid doubts over its impact and worries about a global economic downturn. 
• Moreover, investors remain concerned about the risk of a further escalation of geopolitical tensions and a broader conflict in the Middle East, offering support to the safe-haven precious metal.

Technical Outlook: Gold price technical setup remains tilted in favor of bulls, $2,600 mark holds the key

From a technical perspective, the Relative Strength Index (RSI) on the daily chart is flashing overbought conditions and holding back bulls from placing fresh bets. That said, this week's breakout through a short-term ascending trend channel suggests that the path of least resistance for the Gold price remains to the upside. Hence, the subdued range-bound price action might still be categorized as a consolidation phase before the next leg up. 

In the meantime, dips towards the ascending channel resistance breakpoint, around the $2,625 region, could be seen as a buying opportunity and remain limited near the $2,600 mark. A convincing break below the latter might prompt some technical selling and drag the Gold price towards the $2,575 region en route to the $2,560 area and the $2,535-2,530 resistance-turned-support.