Gold price (XAU/USD) extends its consolidative price move near the all-time peak touched the Asian session on Friday. Positive comments out of the White House and from Canadian officials, along with reports that there will be enough Democratic votes to avoid a US government shutdown, boost investors' confidence.

This is evident from a generally positive tone around the equity markets, which, along with some follow-through US Dollar (USD) buying for the third straight day, acts as a headwind for the safe-haven precious metal.

However, the growing market acceptance that the Federal Reserve (Fed) will cut interest rates several times this year might hold back the USD bulls from placing aggressive bets.

Adding to this, persistent worries about US President Donald Trump's aggressive trade policies and their impact on the global economy should support the Gold price.

This, in turn, suggests that any corrective pullback might still be seen as a buying opportunity and help limit losses for the XAU/USD pair, which remains on track to register gains for the second straight week.

Source: FXStreet