Gold’s price clung above $2,400 on Friday after hitting a daily low of $2,391. The golden metal is set to extend its gains for the third consecutive week on speculation that the Federal Reserve (Fed) might begin its easing cycle in September. Data from the US Department of Labor showed that factory prices rose above estimates, though they failed to underpin the Greenback, a tailwind for the precious metal.The XAU/USD trades at $2,415, virtually unchanged. The US Bureau of Labor Statistics on Friday revealed that the Producer Price Index (PPI) jumped modestly in June, above analysts’ estimates. The University of Michigan Consumer Sentiment preliminary July reading deteriorated, but inflation expectations have tempered.According to the CME FedWatch Tool, traders are pricing a 94% chance that the Fed might cut rates a quarter of a percentage point in September.Hence, US Treasury bond yields are dropping, a tailwind for the non-yielding metal, which benefits from low yields. The US 10-year Treasury note coupon is yielding 4.19%, two basis points below its opening price.Sources cited by Barron’s stated, “Inflation is coming down, but it is not going to disappear. Gold and gold miners are attractive inflation hedges.”Meanwhile, Fed officials have remained cautious regarding monetary policy shifts. Chicago Fed President Goolsbee noted that recent inflation data is “favorable” and could shorten the Fed’s journey toward its inflation goals.St. Louis Fed President Alberto Musalem stated that the current interest rate level is appropriate for the current conditions and expects the economy to grow between 1.5% and 2% this year.Meanwhile, the US Dollar Index (DXY), which tracks the Greenback against a basket of six currencies, plummeted more than 0.40% to 104.09. Daily digest market movers: Gold price flatlines post US PPI

 Technical analysis: Gold buyers take a respite, Gold price hovers above $2,400Gold price consolidates above $2,400 for the second straight day after decisively breaking the Head-and-Shoulders neckline. Momentum favors buyers, though as depicted by the flat Relative Strength Index (RSI), they’re taking a respite before testing higher prices.That said, the path of least resistance is to the upside. The XAU/USD’s first resistance would be the year-to-date high of $2,450, ahead of the $2,500 mark. Conversely, if Gold slides below the $2,400 figure, the next demand zone will be July 5 high at $2,392. If cleared, XAU/USD would continue to $2,350. More By This Author:Silver Price Analysis: XAG/USD Skyrockets Over 2% Amid ‘Double Bottom’ Confirmation Silver Price Analysis: XAG/USD Stabilizes Around $30.50 As Bulls And Bears Battle Gold Rose Sharply To Six-Week High On Dismal US Labor Market Data