Gold Price Forecast: XAU/USD rebound above $1,970, investors await US economic data

• Gold price currently trades around $1,972, gaining 0.09% for the day.
• The upbeat US economic data boosts the US Dollar across the board.
• The escalating geopolitical tension between Israel-Hamas might lift the gold price.

Gold price (XAU/USD) rebounds to $1,970 after bouncing off the weekly lows of $1,950 during the early Asian trading hours on Wednesday. The mild rebound of the precious metal is backed by the consolidation of the US dollar (USD).

Meanwhile, the US Dollar Index (DXY), a measure of the value of USD against six other major currencies, hovers around 106.25. However, the further rise in US Treasury bond yields might cap the upside of the non-yielding yellow metal.

The US Purchasing Management Index (PMI) data on Tuesday came in better than expected. The flash Composite PMI for October climbed to 51.0 from 50.2. The Services PMI rose to 50.9, while Manufacturing PMI grew to 50.0. This is the first time in six months that manufacturing has not fallen below 50. Additionally, the Richmond Manufacturing Index for October fell to 3 from 5 in the previous reading, below the market expectation. The upbeat US economic data alleviated fears that tighter monetary policy and higher borrowing rates would dampen investment and industrial activity.

On the other hand, the escalating geopolitical tension in the Middle East might boost safe-haven assets like gold price. Gold traders will monitor the preliminary estimate of the US Q3 Gross Domestic Product (GDP) on Thursday. On Friday. the US Core Personal Consumption Expenditure Index (PCE) will be released. Traders will take cues from these data and find trading opportunities around gold price (XAU/USD).