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Gold price meets with some supply and snaps a four-day winning streak

US Gold price extends the previous day's late pullback from the $1,923-$1,924 region, or a two-week high and drifts lower through the Asian session on Friday. The XAU/USD currently trades just below the $1,915 level, down over 0.15% for the day, as traders now look to Federal Reserve (Fed) Chair Jerome Powell's highly-anticipated speech at the Jackson Hole Symposium.

Investors will look for fresh cues about the Fed's rate-hike path, which, in turn, will play a key role in influencing the near-term US Dollar (USD) price dynamics and help determine the next leg of a directional move for the Gold price. The disappointing release of the flash PMI prints from the United States (USD) on Wednesday showed that business activity in the world's largest economy approached the stagnation point in August and pushed back expectations for further tightening by the Fed. That said, the overnight hawkish remarks by Fed officials keep the door open for one more 25 basis points (bps) lift-off by the end of this year.

That said, worries about a deeper global economic downturn might offer some support to the safe-haven precious metal and help limit the downside, at least for the time being. Against the backdrop of the worsening economic conditions in China, a host of manufacturing surveys on Wednesday painted a grim picture of the health of economies across the globe and fueled recession fears. This continues to weigh on investors' sentiment, which is evident from a generally weaker tone around the equity markets and acts as a tailwind for the Gold price, warranting some caution before positioning for any further intraday decline.

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