Gold price refreshes weekly top, tests short-term trading range hurdle ahead of US CPI

• Gold price climbs to a fresh weekly top and draws support from a combination of factors.
• The cautious market mood benefits the safe-haven XAU/USD amid a modest USD downtick.
• Traders refrain from placing aggressive bets ahead of the release of the crucial US CPI report.

Gold price (XAU/USD) attracts some buyers for the third straight day on Wednesday and touches a fresh weekly high, around the $2.520-2,521 region during the Asian session. The commodity, however, remains confined in a multi-week-old trading range as traders await the release of the latest US consumer inflation figures due later today. The crucial data will influence market expectations about the size of the rate cut by the Federal Reserve (Fed) at the September 17-18 policy meeting and determine the next leg of a directional move for the non-yielding yellow metal.

In the meantime, the prospects for an imminent start of the Fed’s policy easing cycle fail to assist the US Dollar (USD) to build on its positive move witnessed over the past three days and act as a tailwind for the Gold price. Meanwhile, investors turn cautious heading into the key data risk, which is evident from a generally weaker tone around the equity markets. This is seen as another factor lending some support to the safe-haven precious metal. Bullish traders, however, need to wait for strength beyond the $2,525 supply zone before positioning for any further appreciating move.