Gold price extends its steady intraday descent, slides back closer to $2,300 mark

Gold price (XAU/USD) meets with a fresh supply on Thursday and erodes a part of the previous day's recovery gains from a nearly four-week low. The Federal Reserve (Fed) Chair Jerome Powell told reporters on Wednesday that inflation was too high and progress in bringing it down was uncertain. This suggested that the Fed will keep rates higher for longer, which pushes the US Treasury bond yields higher and  turns out to be a key factor undermining the non-yielding yellow metal.

Apart from this, a generally positive risk tone further contributes to driving flows away from the safe-haven Gold price. Meanwhile, Powell downplayed the risk of any further interest rate hikes, which fails to assist the US Dollar (USD) to attract any meaingful buyers and  languish near a two-week low touched last Friday as . This, in turn, could lend some support to the XAU/USD and help limit the downside ahead of the closely-watched US Nonfarm Payrolls (NFP) report on Friday. 

Daily Digest Market Movers: Gold price remains on defensive amid Fed rate jitters, positive risk tone

• Federal Reserve Chair Jerome Powell warned on Wednesday that interest rates will remain high for longer as disinflation has slowed in recent months and acts as a headwind for the Gold price. 
• The US Treasury bond yields reversed a part of the previous day's post-FOMC slide, helping revive the demand for the US Dollar and contributing to capping the upside for the non-yielding yellow metal. 
• Meanwhile, the global risk sentiment got a boost after Powell signaled that the next move from the Fed was still likely to be an interest rate cut, which further undermines the safe-haven XAU/USD.
• This, along with easing geopolitical tensions, suggests that the path of least resistance for the commodity is to the downside, though the lack of selling warrants caution for bearish traders. 
• Investors might also prefer to move to the sidelines ahead of the release of the closely watched US monthly employment details, popularly known as the Nonfarm Payrolls (NFP) report on Friday.
• In the meantime, Thursday's US economic docket – featuring Challenger Job Cuts, the usual Weekly Initial Jobless Claims, and Trade Balance data – will be looked upon for short-term trading impetus.

Technical Analysis: Gold price bears might wait for break below the 50% Fibo. level before placing fresh bets

From a technical perspective, weakness back below the $2,300 mark now seems to find decent support near the $2,280 level. The latter coincides with the 50% Fibonacci retracement level of the March-April rally, which, if broken decisively, should pave the way for deeper losses. The Gold price might then accelerate the fall towards the next relevant support near the $2,268-2,265 area en route to the $2,230-2,225 region and the $2,200 round figure.

On the flip side, the immediate hurdle is pegged near the $2,335 supply zone ahead of the weekly top, around the $2,352-2,353 area. A sustained strength beyond could lift the Gold price to the $2,371-2,372 resistance en route to the $2,400 round figure and the all-time peak, around the $2,431-2,432 area touched on April 12.