$2,530 remains a tough nut to crack for XAU/USD buyers

• The price of gold bounces back early Thursday, but in the familiar recent range.
• The US dollar retreats with Treasury bond yields amid risk aversion.
• Nvidia’s guidance and comments from the Fed support de-risking flows.
• Technically, the path of least resistance appears to the north for the price of gold.

The price of gold is attempting a minor rebound, staying in its familiar range this week after regaining $2,500 early Thursday. The gold price is capitalizing on risk aversion as traders now shift their focus to the second estimate of US gross domestic product (GDP) and pending home sales data due on Thursday.

Gold price looks at Q2 US GDP and risk trends

Meanwhile, they weigh in on US artificial intelligence giant Nvidia’s earnings report alongside dodgy comments from Atlanta Federal Reserve Bank (Fed) President Raphael Bostic. Both events contributed to the expansion of de-risking flows in Asian transactions.

Shares of Nvidia fell 7 percent in after-market trading despite a 122 percent rise in revenue and a $50 billion buyback as the company’s sales forecast disappointed the market’s lofty expectations. The chipmaker said revenue for the current quarter would be $32.5 billion, below the average analyst estimate of $37.9 billion. Additionally, Nvidia’s gross margin fell to 75.1% from 78.4% in the previous quarter.

Earlier Thursday, Atlanta Fed President Bostic ruled out the first interest rate cut likely in September, noting that “inflation came down faster than expected, unemployment rose more than thought. This means we should bring forward the rate cut to the third quarter.”

“It wouldn’t be good to lower rates only to have to raise them again,” he added. Markets continue to price in a 35% chance the Fed will cut rates in September by 50 basis points (bps), while the odds of a 25bps cut are 65%, according to CME Group’s FedWatch tool.

The Fed’s dovish commentary appears to have had little or no impact on the market pricing in the Fed’s interest rate outlook, helping the gold price rebound. A broad retreat in the US dollar alongside US Treasury yields also bodes well as gold prices head towards the second Q2 US GDP estimate.

Annualized US GDP is expected to hold steady at 2.8% QoQ in Q2, the second estimate is likely to show.

Gold Price Technical Analysis: Daily Chart

The short-term technical outlook for the gold price remains more or less the same, with new higher strength in action, while triangle resistance has become support at $2,469.

The 21-day simple moving average (SMA) is approaching this level, making it a strong support.

The price of gold confirmed a breakout from the top of a symmetrical triangle a few weeks ago.

Meanwhile, the 14-day Relative Strength Index (RSI) is turning north again above 50, currently near 62, suggesting there is more room for growth.

Gold buyers need to recover the record level of $2,532 to face the next key barrier at the $2,550 level.

Acceptance above the latter could challenge the round level of $2,600 en route to the triangle target measured at $2,660.

Alternatively, the area of ​​initial demand is seen at the $2,500 threshold for gold buyers, below which Friday’s low of $2,485 will be contested.

A sustained breach of the latter could expose downside to the aforementioned triangle resistance turned support at $2,469.