Gold price moves away from four-week peak; bears seem non-committed

• Gold price snaps a two-day winning to a multi-week top amid the Fed's hawkish stance. 
• Retreating US bond yields undermine the USD and lend some support to the XAU/USD pair.
• Traders look to Fed speakers for some impetus ahead of the US NFP report on Friday.

Gold price (XAU/USD) drifts lower during the Asian session on Thursday and moves away from a four-week top, around the $2,670 area touched the previous day. The US Dollar (USD) stands firm near a two-year peak touched last week in the wake of the Federal Reserve's (Fed) hawkish shift, which, in turn, is seen as a key factor undermining the non-yielding yellow metal. In fact, the Fed indicated that it would slow the pace of interest rate cuts in 2025 amid a still resilient US economy, signs that the US labor market remained robust and sticky inflation. 

That said, concerns about US President-elect Donald Trump's protectionist policies and persistent geopolitical risks could offer some support to the safe-haven Gold price. The flight to safety leads to a modest pullback in the US Treasury bond yields, which holds back the USD bulls from placing fresh bets and might further contribute to limiting the downside for the XAU/USD. This warrants some caution before positioning for deeper losses as traders await the release of the closely-watched US monthly jobs data, or the Nonfarm Payrolls (NFP) report on Friday. 

Gold price is pressured by the prospects for slower rate cuts by the Fed; downside seems limited

• Automatic Data Processing (ADP) reported that private sector payrolls in the US rose by 122,000 in December, well below November's increase of 146,000 and missing expectations of 140,000.
• A separate Labor Department report showed Initial Jobless Claims stood at 201,000 in the week ending January 4, marking the lowest reading since February 2024 and pointing to a stable labor market. 
• Minutes of the December FOMC meeting showed that policymakers viewed labor market conditions as gradually easing and were in favor of slowing the pace of rate cuts amid stalling disinflation.
• The yield on the benchmark 10-year US government bond shot to its highest level since April 25 on Wednesday, assisting the US Dollar to stand firm near a two-year top and undermining the Gold price. 
• CNN reported that US President-elect Donald Trump is considering declaring a national economic emergency to provide legal justification for a series of universal tariffs on allies and adversaries.
• Ukrainian troops endured significant manpower losses in the face of Russia's relentless assault. Russia's Defence Ministry said that its forces defeated Ukrainian brigades in Seversk and Chasov Yar. 
• Israeli airstrikes continued across the West Bank on Wednesday in the wake of an attack that killed three Israelis on Monday. The Israeli military recovered the body of a hostage from southern Gaza.
• Investors now look to speeches by a slew of influential FOMC members for short-term impetus later during the US session, though the focus will remain glued to the US Nonfarm Payrolls on Friday.

Gold price bulls have the upper hand, acceptance above the $2,665 static resistance awaited

From a technical perspective, the overnight swing high, around the $2,670 area, now seems to act as an immediate hurdle, which if cleared will be seen as a fresh trigger for bullish traders. Given that oscillators on the daily chart have started moving in positive territory, the Gold price might then climb to an intermediate resistance near the $2,681-2,683 zone en route to the $2,700 mark. 

On the flip side, any further slide is likely to find support near the $2,645 area ahead of the $2,635 region and the weekly low, around the $2,615-2,614 zone touched on Monday. Some follow-through selling below the $2,600 confluence, comprising the 100-day Exponential Moving Average (EMA) and a short-term ascending trend line extending from the November monthly low, will be seen as a fresh trigger for bearish traders. The Gold price might then turn vulnerable to slide further below the December swing low, around the $2,583 area, and test the next relevant support near the $2,550 zone.