Meanwhile, US Treasury yields remain steady, with the 10-year bond at 4.4316% and the 2-year yield slightly lower at 4.2992%. Rising rates continue to limit gold’s upside by increasing the opportunity cost of holding non-performing assets.
Traders are awaiting key comments from several Federal Reserve officials this week, including policymaker Austan Goolsbee later today, that could provide more clarity on monetary policy. Upcoming US economic data, such as housing and manufacturing reports, will also influence gold’s direction.
Market outlook for gold
Gold’s near-term prospects depend on its ability to break above $2604.39. If this resistance is cleared, the market could target $2653.63 and higher levels. Conversely, a dip below $2536.85 would favor a bearish scenario, with further losses likely. Traders should remain alert to movements in the dollar and government bond yields as these remain crucial factors for gold prices.