Gold Price Analysis: XAU/USD pulls back from $2,070 as markets hunker down for holidays

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• Gold pulls back after testing $2,070 ahead of Friday’s pre-holiday close.
• Rising investor bets of faster, more frequent Fed rate cuts squeeze Gold higher.
• US inflation continues to cool off, Treasuries ease back amidst risk appetite recovery.

XAU/USD briefly tested above $2,070 on Friday before paring back toward the day’s opening bids. With the Federal Reserve’s (Fed) main interest rate at a 22-year high, markets are incredibly eager for the Fed to begin cutting interest rates, and receding US inflation is pinning investor hopes of an accelerated pace of Fed rate cuts in 2024.