On Tuesday, the price of gold falls amid weakening demand for safe-haven assets and the recovery of the US dollar.
At the same time, experts are suggesting that the price decline may not last long, as there are all indications that the Federal Reserve System (FRS) has completed the cycle of raising interest rates due to weakening consumer inflation and rising Treasury yields.
In addition, despite the easing of geopolitical tensions in the Middle East, the risk of an escalating military confrontation between Israel and Palestine remains.
Israeli Prime Minister Benjamin Netanyahu said that the Israeli army would pause fighting in the Gaza Strip to allow for humanitarian aid and the withdrawal of hostages, but stressed that Israel would not stop its military operation.
The U.S. Dollar Index (DXY) rose 0.37% to 105.65 ahead of comments from Federal Reserve Chairman Jerome Powell that could hint at the U.S. central bank's future interest rate policy.
According to the CME Fedwatch tool, traders see an 85% chance that interest rates will remain unchanged until the end of the year.
At the same time, the latest data from China indicated that the country's trade balance shrank to $56.53 billion in October from $77.71 billion the previous month, due to lower overseas demand, particularly from the U.S. and Europe.
Currently, the XAU/USD pair is down 0.67% at $1,963.51.
If the price of gold continues to fall, it will find support at $1,950, which if breached, will open the way to $1,920. However, if the price shows growth, it will meet resistance at $1,980, which, if broken, will allow the asset to test the level of $1,990.
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