Gold Price Forecast: XAU/USD consolidates near $1,900, recovering from five-month lows

• Gold price hovers near $1,900, awaiting fresh cues about Fed policy.
• China's gloomy economic prospects could put pressure on Gold's ability to sustain its value.
• Investors await US Initial Jobless Claims, seeking fresh insights into the economic outlook.

Gold price recovered its losses registered on Wednesday, currently trying to hold the ground near the $1,900 per troy ounce during the early trading hours in the European session on Thursday. The recent release of strong macroeconomic data from the United States (US) on Wednesday exerted downward pressure on the price of gold. Investors seek additional momentum from upcoming US economic indicators in order to gain a clearer perspective on the potential further tightening of monetary policy by the US Federal Reserve (Fed).

Wednesday’s US economic calendar included the release of the US Housing Starts (MoM) data for July, which increased to 1.452M from the previous month's 1.398M. This exceeded the expected figure of 1.448M. Additionally, the Monthly Industrial Production rose of 1%, surpassing the projected growth of 0.3% and swinging from the previous month’s 0.8% decline. However, US Building Permits experienced a minor rise to 1.442 million in July from the prior 1.441 million, falling short of the anticipated 1.463 million.

Concerns about China's deteriorating economic prospects could put pressure on Gold's ability to sustain its value. Moreover, robust US economic performance triggered the US Treasury bond yields, bolstering the US Dollar (USD). This upward momentum in the USD could exert downward pressure on the price of Gold.

Investors will closely monitor upcoming US data releases, namely Initial Jobless Claims and the Philadelphia Fed Manufacturing Survey. These datasets could provide fresh insights into the overall US economic outlook, helping Gold traders in obtaining a clearer understanding of the market dynamics.