Gold Price Forecast: XAU/USD eases from eight-month high, downside remains cushioned

• Gold price struggles to capitalize on its intraday positive move to a fresh multi-month peak.

• A modest US Dollar strength and a positive risk tone act as a headwind for the commodity.

• Bets for smaller Fed rate hikes help limit losses as the focus remains on the US CPI report.
  

Gold price surrenders modest intraday gains to a fresh eight-month peak, around the $1,886-$1,887 area touched earlier this Wednesday and turns neutral heading into the North American session. Currently placed just above the $1,875 level, the downside for the XAU/USD remains cushioned amid expectations for a less aggressive policy tightening by the Federal Reserve (Fed). Bets for less aggressive Federal Reserve lend support to Gold price

Friday’s mixed jobs report from the United States (US) showed a slowdown in wage growth and pointed to signs of easing inflationary pressures. Furthermore, business activity in the US services sector hit the worst level since 2009, suggesting that the effect of the Fed's large rate hikes in 2022 is being felt in the economy. This, in turn, lifted bets for smaller Fed rate hikes going forward, which keeps the US Treasury bond yields depressed near a multi-week low and might continue to lend support to the non-yielding Gold price.