Gold price (XAU/USD) attracts some buyers during the early part of the European session on Friday and looks to build on its recovery from a two-month low, around the $1,984 region touched this week. The US Dollar (USD) bulls prefer to wait on the sidelines amid the uncertainty over the Federal Reserve's (Fed) rate cut path, which, in turn, is seen as a key factor acting as a tailwind for the commodity. That said, a goodish pickup in the US Treasury bond yields, bolstered by Atlanta FED President Raphael Bostic's hawkish remarks, lends some support to the Greenback and should cap gains for the non-yielding yellow metal.

Apart from this, a generally positive tone around the equity markets might further contribute to keeping a lid on any meaningful appreciating move for the safe-haven Gold price. Market participants now look to the US economic docket – featuring the Producer Price Index(PPI), Housing Starts and Michigan Consumer Sentiment Index. This, along with speeches by influential FOMC members, will drive the USD demand and provide some impetus to the XAU/USD. The focus will then shift to the FOMC meeting minutes, due next Wednesday. Nevertheless, the precious metal remains on track to end in the red for the second straight week.