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Gold prices continue their downward trajectory, pressured by the Federal Reserve's hawkish stance, which has elevated US bond yields. The yellow metal remains under selling pressure, hovering around the $2,625 mark, its 100-day SMA support. While geopolitical risks and trade concerns provide a safety cushion, a robust US dollar and resilient economic data keep the commodity under pressure. Investors now turn their focus to key US macroeconomic releases, including the Nonfarm Payrolls (NFP) report, which could influence the Fed's future monetary policy. Technically, the $2,600 level remains crucial support, while resistance lies near the $2,665 area.

Key Highlights

* Gold prices retreat to $2,625 amid elevated US bond yields.

* Fed signals slower rate cuts, boosting the US dollar's strength.

* Geopolitical risks limit further losses for safe-haven gold.

* Key US economic data, including NFP, to influence price trends.

* Technical support near $2,600; resistance around $2,665 persists.

Gold prices (XAU/USD) extended their downward trend on Monday, marking a second consecutive session of losses. After retreating from the $2,665 multi-week high last Friday, the yellow metal is testing the critical 100-day SMA support near $2,625. The Federal Reserve's hawkish signal, indicating a slower pace of rate cuts in 2025, has fueled elevated US bond yields, diminishing gold's appeal as a non-yielding asset.

Further weighing on prices is the strong US economic data, with the US Manufacturing PMI climbing to 49.3, signaling resilience in the economy. The yield on the benchmark 10-year US Treasury bond also reached a multi-month high, bolstering the dollar and further pressuring gold.

However, geopolitical risks such as intensified Israeli-Houthi clashes and ongoing tensions in Ukraine provide a safety net for gold prices. Trade concerns, including potential tariff adjustments under the new US administration, also add to the uncertainty.

From a technical standpoint, the $2,600 level remains a pivotal support, below which the next target lies near $2,583. On the upside, gold must breach $2,665 to regain bullish momentum, with further resistance at $2,700.

Finally

Gold faces bearish momentum amid robust US yields and resilient data. A decisive move below $2,600 or above $2,665 will determine the next trend.

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