Gold price continues to draw support from dovish Fed-inspired USD selling bias.
Worries about a US economic downturn further underpin the safe-haven metal.
Traders turn cautious ahead of the release of the crucial US employment details.

Gold price (XAU/USD) climbed closer to the $2,524-2,525 supply zone on Thursday amid some follow-through US Dollar (USD) selling, led by bets for a larger interest rate cut by the Federal Reserve (Fed) later this month. A mixed bag of employment data released from the United States (US) this week suggested that the labor market was losing steam and triggered worries about the health of the economy. This, in turn, lifted market expectations about the possibility of a more aggressive policy easing by the Fed, which dragged the USD away from a two-week high touched on Tuesday and benefited the non-yielding yellow metal.

Meanwhile, renewed fears of a downturn in the world's largest economy tempered investors' appetite for riskier assets. This, along with persistent geopolitical tensions, turned out to be another factor underpinning demand for the safe-haven Gold price. The XAU/USD, however, remains below the all-time peak touched in August as traders opt to wait for the release of the closely-watched US monthly employment details later this Friday. The popularly known as the Nonfarm Payrolls (NFP) report will be looked upon for cues about the Fed's rate-cut path, which, in turn, will provide a fresh directional impetus to the precious metal.

GOLD PRICE BULLS TURN CAUTIOUS NEAR $2,525 HURDLE, AHEAD OF US NFP REPORT