On Thursday, gold continued to fall on the back of reduced risks of conflict escalation in the Middle East and the strengthening of the US dollar.
Israel postponed its plans for a ground invasion to deliver humanitarian aid and secure the safe passage of hostages, helping to revive hopes for the containment of the military conflict.
The US Dollar Index (DXY) remains above 105.7, also indicating investor interest in the asset and putting pressure on gold bullion.
Now all investors' attention is focused on the speech of the head of the Federal Reserve Jerome Powell, which is expected during the American session and will include comments on the upcoming December meeting of the U.S. central bank on monetary policy.
It is worth noting that during his speech on Wednesday, Jerome Powell did not comment on monetary policy and economic outlook.
Markets expect Powell to maintain the Fed's stance on keeping interest rates on hold for an extended period of time, as the latest U.S. jobs report may have a negative impact on inflation expectations.
Earlier, Federal Reserve Bank of Philadelphia President Patrick Harker said that the Fed's next decision could be anything depending on the economic data, adding that the central bank will keep interest rates high and there are no signs of a cut in the near future.
In addition, the latest data from China's National Bureau of Statistics showed that China's overall consumer price index fell 0.1% month-on-month and 0.2% year-on-year in October, down from a 0.2% increase in September. This indicates that the world's second-largest economy is still under deflationary pressure.
Currently, the XAU/USD is down 0.17% to $1,947.63.
If the price of gold continues to fall, it will find support at $1,930, a break of which will open the door to $1,920.
In the case of a reverse scenario, if the price can return to growth, it will encounter strong resistance in the neighborhood of $1,970, the overcoming of which will allow the asset to continue moving to the neighborhood of $1,980.
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