Gold price (XAU/USD) has experienced a second consecutive day of positive momentum, building on its recovery from the $2,000 psychological mark, which marked its lowest level since December 13. The precious metal continues to benefit from escalating geopolitical tensions, particularly in the Middle East, and concerns about sustained economic weakness in China.

The supportive factors have contributed to the positive traction in the safe-haven XAU/USD. However, the upside potential appears to be limited due to recent developments. This week’s release of US macroeconomic data indicates a robust economic condition, prompting investors to scale back their expectations for an early interest rate cut by the Federal Reserve (Fed). Consequently, US Treasury bond yields have risen, supporting the US Dollar (USD), which is near a one-month high. This, coupled with a positive risk tone, is expected to act as a headwind for Gold, given its non-yielding nature.