• Gold price met with a fresh supply and eroded a part of the overnight recovery gains.
• The Trump trade optimism revives the USD demand and weighs on the precious metal.
• Retreating US bond yields and bets for additional Fed rate cuts could help limit losses.

Gold price (XAU/USD) struggles to capitalize on the previous day's solid rebound from the 50-day Simple Moving Average (SMA) support near the $2,643 area, or over a three-week low and attracts some sellers during the Asian session on Friday. The US Dollar (USD) regains positive traction and reverses a part of the previous day's retracement slide from a four-month peak. This, along with a generally positive risk tone, turns out to be a key factor undermining the safe-haven precious metal. 

Meanwhile, the unwinding of the so-called Trump trade and the lack of hawkish signals from the Federal Reserve (Fed) keep the US Treasury bond yields depressed below a multi-month high touched on Wednesday. This, in turn, might hold back the USD bulls from placing aggressive bets and act as a tailwind for the non-yielding Gold price. Traders now look forward to the release of the Preliminary Michigan Consumer Sentiment Index and Inflation Expectations for short-term opportunities. 

Gold price drifts lower amid renewed USD buying and a positive risk tone

• Traders closed out some profitable Trump trades, which triggered a US Dollar corrective decline from a four-month high and provided a goodish lift to the Gold price on Thursday.
• The USD decline remained uninterrupted after the Federal Reserve decided to lower its benchmark overnight borrowing rate by a 25 basis point, to a target range of 4.50%-4.75%. 
• In the accompanying policy statement, Fed officials justified the easing mode as they view supporting employment becoming at least as much of a priority as arresting inflation.
• Furthermore, Fed Chair Jerome Powell, during the post-meeting press conference, failed to offer cues that the central bank may pause rate cuts in the near term amid sticky inflation. 
• According to the CME Group's FedWatch Tool, traders are pricing in 75% odds the Fed will cut rates again in December, leading to a further decline in the US Treasury bond yields.
• Donald Trump's presidential election victory fueled speculations about economic policy shifts that could increase deficits and inflation, and restrict the Fed's ability to cut rates.
• Meanwhile, hopes for an announcement of additional stimulus from China after a five-day meeting of the Standing Committee of the NPC remains supportive of the upbeat mood.
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