Depressed US Treasury bond yields further act as a tailwind

Furthermore, the ISM Services PMI indicated a slowdown in growth during March, along with a deceleration in its Employment sub-index, suggesting that the Fed's efforts to cool the labor market may be having some impact. Meanwhile, expectations that the Fed is nearly done with its inflation-fighting interest rate hikes keep the US Treasury bond yields depressed near their lowest level in seven months. This should contribute to capping the USD and suggests that the path of least resistance for Gold price is to the upside.

Focus remains glued on Friday’s NFP report from United States

Traders, however, seem reluctant to place aggressive bets and prefer to wait on the sidelines ahead of the release of the crucial US monthly employment details - popularly known as NFP on Friday. In the meantime, Thursday's US economic docket, featuring the usual Weekly Initial Jobless Claims, will be looked upon for short-term opportunities later during the early North American session. The immediate market reaction, however, is more likely to be limited and might do little to provide any meaningful impetus to Gold price.