Gold price remains below $2,750 level on stronger USD, elevated US bond yields

• 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) fails to capitalize on Friday's late rise back closer to the $2,750 area and opens with a modest bearish gap at the start of a new week. The US Dollar (USD) buying remains unabated in the wake of a fresh leg up in the US Treasury bond yields, bolstered by the growing acceptance that the Federal Reserve (Fed) will proceed with smaller rate cuts, and undermines the commodity. Apart from this, a generally positive risk tone is seen as another factor exerting pressure on the precious metal. 

The downside for the Gold price, however, remains cushioned in the wake of safe-haven demand stemming from Middle East tensions and US election jitters. Traders might also prefer to wait on the sidelines ahead of this week's important US macro releases - the Advance Q3 GDP report, the Personal Consumption Expenditures (PCE) Price Index and the closely-watched Nonfarm Payrolls (NFP) report. This, in turn, warrants caution before placing aggressive bearish bets around the XAU/USD. 

Daily Digest Market Movers: Gold price is pressured by rising US bond yields and a bullish USD

• The US Dollar added to its recent strong gains registered over the past four weeks and climbed to its highest level since July 30 amid bets for a less aggressive policy easing by the Federal Reserve. 
• According to the CME Group's FedWatch Tool, the markets have nearly fully priced in the possibility of a regular 25 basis points rate cut by the US central bank at its November policy meeting. 
• The latest poll indicates a tight race between Vice President Kamala Harris and the Republican nominee Donald Trump amid deficit-spending concerns after the November 5 US presidential election.
• Moreover, the US macro releases on Friday added to a string of recent upbeat data and suggested that the economy remains on strong footing, validating market bets for smaller Fed rate cuts.
• The US Census Bureau reported that Durable Goods Orders in the US declined by 0.8% in September, lower than the 1% fall expected, while new orders excluding transportation increased by 0.4%. 
• Adding to this, the University of Michigan's Consumer Sentiment Index reached a six-month high of 70.5 in October, better than both the preliminary result and the previous month's reading. 
• The yield on the benchmark 10-year US government bond stands firm near a three-month high touched last week, which is seen benefiting the USD and weighing on the non-yielding precious metal. 
• Iran on Saturday indicated that it would not retaliate against Israeli strikes on military targets across its territory if a deal is reached for a ceasefire agreement in the Gaza Strip and Lebanon. 
• China's Vice Minister of Finance, Liao Min, said on Monday that the country will step up countercyclical adjustments of its macro policies to bolster economic recovery in the fourth quarter.

Technical Outlook: Gold price remains confined in  one-week-old range below the all-time high

From a technical perspective, last week's repeated failures to find acceptance or build on momentum beyond the $2,748-2,750 area warrant some caution for bullish traders. Moreover, the recent range-bound price action witnessed over the past week or so points to indecision among traders over the next leg of a directional move. Hence, it will be prudent to wait for a sustained strength beyond the said barrier or a convincing break below the short-term trading range support near the $2,720-2,715 zone, before positioning for a firm near-term trajectory. 

Meanwhile, some follow-through buying beyond the $2,748-2,750 region should allow the Gold price to retest the all-time peak, around the $2,658-2,659 area touched earlier this month. The subsequent move up could lift the XAU/USD towards the $2,770 zone, representing a nearly four-month-old ascending trend-line resistance, en route to the $2,800 round-figure mark.

On the flip side, weakness below the $2,720-2,715 region is likely to find decent support near the $2,700 mark, which if broken decisively should pave the way for deeper losses. The gold price might then accelerate the corrective fall towards intermediate support near the $2,675 area and eventually drop to the $2,657-2,655 horizontal support.