- Gold price kicks off the new week on a weaker note amid sustained USD buying interest.
- Bets for smaller Fed rate cuts and deficit-spending concerns push the US bond yields higher.
- Easing fears of a further escalation of the Israel-Iran conflict undermines the XAU/USD.
Gold price (XAU/USD) opens with a modest bearish gap at the start of a new week and erodes a part of Friday’s positive move back closer to the $2,748-2,750 supply zone. Firming expectations for a less aggressive policy easing by the Federal Reserve (Fed), along with deficit-spending concerns after the US election, triggers a fresh leg up in the US Treasury bond yields. This, in turn, lifts the US Dollar (USD) to a fresh high since July 30 and is seen driving flows away from the non-yielding yellow metal.
Moreover, a generally positive risk tone turns out to be another factor exerting some downward pressure on the Gold price, though any…
