After surpassing $2,000 per troy ounce on Friday, the price of gold is falling as it tries to regain lost positions.
The fall in gold is mainly due to a recovery in U.S. long-term bond yields, but losses are limited due to ongoing geopolitical tensions in the Middle East.
The U.S. Dollar Index (DXY), which tracks the greenback's performance against the world's major currencies, is falling as markets are now pricing in a weakening U.S. labor market. Weak jobs data could allow the Fed to keep interest rates in the 5.25%-5.50% range for the rest of the year.
Richmond Fed President Thomas Barkin said it was too early to make a December rate forecast. Minneapolis Fed President Neel Kashkari also supported keeping rates unchanged in the 5.25%-5.50% range.
According to the latest CME Fedwatch data, traders see a more than 90% probability that the Fed will hold rates steady in December.
Meanwhile, markets are closely monitoring the latest news on the standoff between Israel and Palestine, after Israeli Prime Minister Benjamin Netanyahu rejected calls for a ceasefire in a meeting with U.S. Secretary of State Anthony Blinken.
Currently, the XAU/USD pair is down 0.07%, trading at $1,987.26.
The XAU/USD continues to move within the framework of growth and the formation of a head and shoulders reversal pattern. Moving averages indicate the presence of a short-term bullish trend. In the near term, we should expect an attempt to develop the growth of the correction and test the resistance level at 2,005 dollars.
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