Gold remains on the defensive below $2,748-2,750 hurdle amid positive risk tone
Gold price (XAU/USD) struggles to capitalize on its intraday bounce and remains below the $2,748-2,750 supply zone through the early part of the European session on Monday. Safe-haven demand stemming from Middle East tensions and US election jitters continues to act as a tailwind for the precious metal. Apart from this, a modest US Dollar (USD) pullback from its highest level since July 30 turns out to be another factor lending some support to the commodity.
That said, the prospects for smaller rate cuts by the Federal Reserve (Fed) and deficit-spending concerns after the US election remain supportive of elevated US Treasury bond yields. This, along with a generally positive risk tone, keeps a lid on the non-yielding Gold price. Traders also seem reluctant ahead of this week's key US macro data – the Advance Q3 GDP print, the Personal Consumption Expenditures (PCE) Price Index and the Nonfarm Payrolls (NFP) report.
Source: FXstreet