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• Gold price corrects further from the record high amid some follow-through USD buying.
• September Fed rate cut bets should cap the USD and help limit losses for the XAU/USD.
• The technical setup supports prospects for the emergence of dip-buying near $2,400.

Gold price (XAU/USD) remains under some selling pressure for the third successive day on Friday and retreats further from the all-time peak touched earlier this week. The downfall is exclusively sponsored by a further US Dollar (USD) recovery from over a three-month low set on Thursday, which is seen undermining demand for the USD-denominated commodity. Any further downside, however, seems limited in the wake of dovish Federal Reserve (Fed) expectations. 

The US Dollar (USD) builds on the previous day's solid recovery from over a four-month trough, led by the post-ECB slump in the shared currency, and is seen as a key factor exerting downward pressure on the commodity. The downfall could further be attributed to some profit-taking, especially after the recent rally of over 6.5% since the beginning of this month. geopolitical tensions and central bank demand should help limit the downside for the precious metal.

Daily Digest Market Movers: Gold price bears seem non committed amid Fed rate cut bets, risk-off mood
 

• The US Dollar builds on the previous day's strong recovery from its lowest level since March 21 and drags the Gold price lower for the third successive day on Friday. 
• The US Bureau of Labor Statistics (BLS) reported on Thursday that the number of Americans filing for unemployment benefits in the week ending July 13 rose to 243K.
• Additional details of the report revealed that the 4-week moving average swelled to the highest level in more than 2-1/2 years, pointing to a loosening labor market.
• This, along with ebbing inflation, paves the way for an imminent start of the Federal Reserve's rate-cutting cycle, offsetting the upbeat US manufacturing data.
• In fact, the Philadelphia Fed Manufacturing Index remained in positive territory for a sixth straight month and rose to 13.9 from 1.3 in the previous month. 
• Nevertheless, the CME Group's FedWatch Tool indicates that markets are pricing in a 100% chance of a rate-cut in September and an additional two cuts by year-end.
• Meanwhile, former President Donald Trump said that Taiwan should pay the US for defense, raising doubts over the US commitment to defend Taiwan in the event of an attack by China. 
• This comes on top of geopolitical tensions stemming from conflicts in the Middle East and the protracted Russia-Ukraine war, which should lend support to the XAU/USD. 

Technical Analysis: Gold price technical setup favors bulls and supports prospects for the emergence of dip-buying
 

From a technical perspective, any subsequent fall is likely to find decent support near the $2,413-2,412 area ahead of the $2,400 round-figure mark. This is followed by the $2,390-2,385 horizontal resistance breakpoint, now turned support, which, if broken decisively, might prompt some technical selling. The Gold price might then accelerate the downfall toward testing the 50-day Simple Moving Average (SMA) support, currently pegged near the $2,359-2,358 region. Sustained weakness below the latter could expose the 100-day SMA near the $2,311 zone, with some intermediate support near the $2,330-2,328 region. 

On the flip side, the Asian session high, around the $2,445 area, now seems to act as an immediate hurdle, above which the Gold price could climb to the $2,469-2,470 region. Given that oscillators on the daily chart are still holding comfortably in positive territory, bulls might then aim to retest the all-time peak, near the $2,483-2,484 region, and conquer the $2,500 psychological mark. 

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