Gold Price Prediction: XAU / USD falls toward $1,793 support convergence as US Dollar yields rise

Gold price (XAU/USD) accepts offers to rise from a two-month low to around $1,808 on Monday morning. In doing so, the precious metal justifies the most recent uptick in the US Dollar, following a week-long decline, amid hawkish concerns surrounding the US Federal Reserve (Fed) and geopolitical concerns.

That said, the US Dollar Index (DXY) renewed its intraday high around 105.30, following the initial pullback from a seven-week high. In doing so, the dollar index against the six major currencies has strengthened for the fifth consecutive day.

The DXY's recovery from the intraday low can be attributed to the firmer US Treasury bond yields, as the US 10-year Treasury yields reverse the early-day declines of approximately 3.95 basis points. In addition, the two-year counterparts return to their greatest levels since November 2022, as bond bears approach the 4.83% level as of press time.

Fears of an Australian recession, decreased consumption in New Zealand, and a soft landing in the United States have contributed to the recent weakness of the XAU / USD. Concerns about a hawkish Federal Reserve could contribute to the precious metal's decline, particularly in light of last week's strong inflation indicators and policymakers' optimistic comments. It should be noted that the most recent rumors regarding additional Western sanctions against Russia and Beijing-Moscow relations also favor the Gold Bears.

It’s worth noting, however, that the S&P 500 Futures lick its wounds with mild gains after the Wall Street benchmark posted the biggest weekly slump of 2023.

A stronger US dollar and geopolitical worries keep the Gold price on the bears' radar. In the absence of top-tier data, the XAU / USD may be able to recover some of its losses. Traders must therefore keep an eye on the US ISM Manufacturing PMI, Services PMI, Durable Goods Orders, and China's official PMIs this week for unambiguous direction.