Gold price trades with modest intraday gains, lacks follow-through buying

• Gold price gains positive traction on Thursday amid sliding US bond yields and a weaker USD.
• A further rise in equity markets caps any meaningful gains for the safe-haven precious metal.
• Geopolitical tensions and China’s economic woes should limit the downside for the XAU/USD.

Gold price (XAU/USD) edges higher during the Asian session on Thursday, albeit lacking a  follow-through and remains below the $2,000 psychological mark. A generally positive risk tone is seen as a key factor acting as a headwind for the precious metal. The commodity, however, manages to hold above a one-week trough, around the $1,970-1,969 region touched the previous day, warranting caution for aggressive bearish traders.

The US Treasury bond yields and the US Dollar (USD) continue to drift lower in the wake of expectations that the Federal Reserve (Fed) may be done raising interest rates. This, in turn, is seen lending some support to the non-yielding Gold price. Apart from this, the risk of a further escalation in the Israel-Hamas conflict, along with the worsening economic conditions in China, should limit any meaningful slide for the safe-haven XAU/USD.