Gold price (XAU/USD) keeps a mild buying tone in Thursday’s early European session, with price action approaching the top of the last few days’ trading range. Investors are increasingly confident that the major central banks’ tightening era is over and speculation that rate cuts might come before previously thought is keeping bullion sellers in check. The Federal Reserve (Fed) is widely expected to leave rates on hold at their monetary policy meeting next week, with the market pricing in a 50% chance that rate cuts will start in March Next year.

Investors expect the European Central Bank (ECB) to stand pat on December 14 and to cut rates by 150 points next year, starting in March. Earlier this week, the Bank of Canada (BoC) and the Reserve Bank of Australia (RBA) hit the pause button, adding to evidence that the tightening cycles are coming to an end. In the macroeconomic domain, Thursday’s ADP Employment data confirmed that the US labor market is loosening. The focus is now on Friday’s Nonfarm Payrolls report to confirm that view. The technical picture shows the XAU/USD pair looking for direction, moving within a narrow range, supported above the key $2,000 level, yet unable to find any meaningful acceptance when it approaches the $2,040 level.

A look at the four-hour chart and we see price action capped below the 50-period SMA. The RSI wavering around the 50 line, which suggests a lack of clear direction with investors awaiting the release of Friday’s Nonfarm Payrolls report. From a wider perspective, the longer-term bullish trend from early October lows remains intact. Immediate resistance remains at $2,040, which guards the path towards $2,067, ahead of the record-high $2,150. On the downside, a confirmation below $2,000 would negate the bullish view and add bearish pressure towards $1,950 and $1,932.