• Gold price edges higher and moves away from the weekly low touched on Thursday.
• Dovish Fed expectations prompt fresh USD selling and continue to act as a tailwind.
• Geopolitical risks further act as a tailwind ahead of Fed Chair Jerome Powell’s speech.

Gold price (XAU/USD) fell more than 1% on Thursday as bulls opted to take some profits off the table amid a goodish rebound in the US Treasury bond yields and the US Dollar (USD). The downside, however, remains cushioned in the wake of growing acceptance that the Federal Reserve (Fed) will start lowering borrowing costs in September. The bets were reaffirmed by rather unimpressive US macro data, which pointed to a cooling labor market and suggested that the economy is at risk of a slowdown. This tempers investors' appetite for riskier assets and offers support to the safe-haven precious metal.

Apart from this, worries about a broader conflict in the Middle East assisted the Gold price in attracting some dip-buyers during the Asian session on Friday. The XAU/USD, however, remains below the $2,500 psychological mark as traders now seem reluctant and prefer to wait on the sidelines ahead of Fed Chair Jerome Powell's speech at the Jackson Hole Symposium, due later this Friday. Powell's remarks will be scrutinized closely for fresh cues about the Fed's rate-cut path. Apart from this, geopolitical developments will play a key role in influencing the XAU/USD and determining the near-term trajectory.