Gold price (XAU/USD) trades back and forth below $1,990 as the downside is cushioned by escalating Middle East tensions while the upside is limited by more upbeat US economic data, namely robust Q3 Gross Domestic Product (GDP) and Durable Goods Orders. The precious metal failed to deliver a decisive action despite the release of the sticky Core Personal Consumption Expenditure (PCE) inflation data. The US Bureau of Economic Analysis (BEA) reported that Monthly core PCE inflation grew by 0.3% in September as expected by the market participants against the 0.1% growth recorded in August. On an annual basis, core PCE inflation rose by 3.7% as forecasted but remained lower than the 3.9% increase in August.

A sticky Fed’s preferred inflation gauge seems insufficient to dent expectations of a steady interest rate decision from the Federal Reserve (Fed)in its upcoming monetary policy meeting, scheduled for November 1 as US long-term bond yields are significantly higher. The US Dollar and long-term bond yields recovered sharply after blockbuster GDP numbers as the data shows resilience in the US economy. The phenomenal GDP growth aligns with the “soft landing” scenario envisaged by the Fed in its battle against stubborn inflation. Still, the upside in the Gold price could remain restricted as US Treasury yields may remain elevated for a long amid the Fed’s “higher for longer interest rates” plot. Gold price trades back and forth below the crucial resistance of $1,990.00. The precious metal is trading inside Thursday’s range as investors await the US core PCE reading, which will provide some cues about the Fed’s monetary policy action on November 1. The 20-day Exponential Moving Average (EMA) has crossed the 50-day and 200-day EMAs to the upside, portraying a bullish near-term trend.