Gold price clings to gains near two-week high, looks to US CPI for fresh impetus

• Gold price builds on its recent recovery from a multi-month low and climbs to a two-week high.

• Geopolitical tensions, sliding bond yields and a weaker USD continue to lend support to the metal.

• The US CPI report could offer fresh cues about the Fed’s rate-hike path and provide some impetus.

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Gold price (XAU/USD) prolongs its recent strong recovery move from the $1,810 area, or a seven-month low touched last week and climbs to a fresh two-week high heading into the European session on Thursday. As geopolitical tensions flare in the Middle East, the precious metal has regained its status as a safe haven of choice and draws additional support from the recent US Dollar (USD) decline. Apart from this, falling global bond yields turn out to be another factor benefiting the non-yielding yellow metal and fuelling the rally.

With the latest leg up, the Gold price has now recovered over 30% of its losses registered in September and the positive move seems rather unaffected by a generally positive tone around the equity markets. This, along with speculations that the Federal Reserve (Fed) is nearing the end of its rate-hiking cycle, suggests that the path of least resistance for the XAU/USD remains to the upside. Bulls, however, could take a breather ahead of the latest consumer inflation figures from the United States (US), due later during the North American session.