Gold price rebounds from sub-$2,900 levels amid sustained USD selling, trade war fears

• Gold price remains confined in a range on Friday as traders keenly await the US NFP release. 
• Rising trade tensions, the risk-off mood, and a weaker USD lend support to the precious metal.
• Bets for more interest rate cuts by the Fed contribute to limiting the downside for the XAU/USD.

Gold price (XAU/USD) attracts some dip-buyers following an intraday dip to sub-$2,900 levels and climbs to a fresh daily peak during the early European session on Friday. The commodity, however, remains confined in a multi-day-old trading range as traders seem reluctant and opt to wait for the crucial US monthly employment details. The popularly known Nonfarm Payrolls (NFP) report will influence the near-term US Dollar (USD) price dynamics and provide a fresh impetus to the precious metal.

Heading into the key data risk, bets that the Federal Reserve (Fed) could cut rates multiple times in 2025 amid signs of slowing US economic growth keep the USD depressed near a multi-month low and further underpin the Gold price. Meanwhile, worries about US President Donald Trump’s trade policies and their impact on the global economy continue to weigh on investors’ sentiment. This is evident from a weaker tone around the equity markets and also offers support to the safe-haven bullion.