In the face of USD weakness, the gold price gathers impetus toward a record closing above $2,070

During the early Asian session on Thursday, the gold price (XAU/USD) gains traction above a record close of $2,070. The yellow metal's increasing trend is aided by a weaker US Dollar (USD) globally. The gold price is currently trading near $2,080, up 0.09% on the day.

Meanwhile, the US Dollar Index (DXY), which measures the value of the US dollar against a weighted basket of currencies used by US trading partners, has fallen to its lowest level since July near 100.85. Treasury yields are falling, with the 10-year yield at 3.80%.

The drop in November's US Core Personal Consumption Expenditure Price Index (PCE), the Federal Reserve's favored inflation indicator, spurred wagers on the Fed cutting interest rates soon. This, in turn, weighs on the US dollar and offers some support to gold priced in USD. According to the CME Fedwatch tool, markets are pricing in more than 88% of a rate decrease in March and entirely pricing in a rate cut in May.

The US Richmond Fed Manufacturing Index was -11 in December, up from -5 the previous month, and fell short of the market consensus of -7, according to data released on Wednesday. The US will release weekly jobless claims numbers on Thursday, which are predicted to show a 210K increase in the week ending December 23.

In addition, China seeks to boost domestic demand in order to hasten economic recovery and promote stable growth. In addition, the country will avoid and resolve threats in critical areas. Positive changes in China's economic situation may enhance gold, as China is the world's largest gold buyer.

On Thursday, market participants will focus on the US weekly jobless claims, trade balance, and November Pending Home Sales report. However, these data may have little impact on the market.