Gold Price Forecast: XAU/USD pares modest intraday losses below $2,000, US PMI data eyed

Gold price (XAU/USD) pares losses as the US dollar (USD) resumes its decline during the early Asian session on Friday. There were no economic data release from the US on Thursday. The gold price currently trades around $1,992, unchanged for the day.

Meanwhile, the US Dollar Index (DXY), an index of the value of the USD measured against a basket of six world currencies, declined marginally to 103.75. The US Treasury yields consolidate their losses, with the 10-year yields standing at 4.41%. This, in turn, benefits the yellow metal as US yields are the opportunity cost of holding non-yielding metals.

China's efforts to alleviate the property crisis boosted market sentiment on Friday. According to Bloomberg, Chinese authorities have reportedly included Country Garden Holdings Co on a list of 50 eligible property developers that would have access to financing. Other troubled developers on the list are Sino-Ocean Group and CIFI Holdings.

Looking ahead, gold traders will monitor the US S&P Global PMI data on Friday. The Manufacturing PMI is expected to decline from 50 to 49.8 while Services PMI is estimated to ease from 50.6 to 50.4. Trades will take cues from these figures and find a trading opportunity around the gold price.

Gold price (XAU/USD) technical outlook:

The technical outlook suggests that the bullish bias stays intact as the yellow metal holds above the key 100-hour Exponential Moving Averages (EMA) on the daily chart. Furthermore, the Relative Strength Index (RSI) stands in bullish territory above 50, which supports the buyers for the time being.

Resistance level: $2,000, $2030, and $2,045

Support level: $1,970, $1,950 and $1,935