XAUUSD Forecast: Gold prices eyes more pain stepping into the US CPI Data this week

• Gold sellers extend control below $2,700 early Monday as the US holiday could exaggerate price moves.
• The US Dollar rally pauses despite firmer Treasury bond yields and China woes-driven tepid risk sentiment.   
• Gold price looks to challenge critical $2,641 support as daily RSI pierces the midline from above

The gold price has begun the new week below $2,700, with the intention of continuing its three-week losing trend. A pause in the US Dollar’s upsurge was counteracted by a rebound in US Treasury bond yields and China’s economic concerns, which imposed further downward pressure on the price of gold. The US inflation week commences with the gold price in a precarious position.

After a dovish US Federal Reserve (Fed) interest-rate reduction decision led to a retracement late last week, US Treasury bond yields staged a comeback in Asian trading on Monday.

In the interim, the market’s disappointment with China’s 10 trillion yuan ($1.4 trillion) debt package and inflation’s gradual decline exacerbated concerns regarding the country’s economic prospects, which had a detrimental impact on the price of gold. China is the world’s largest purchaser of gold.

The Consumer Price Index (CPI) in China increased by 0.3% last month compared to the previous year, which was the lowest increase since June and a decrease from the 0.4% increase in September. The National Bureau of Statistics (NBS) reported this data on Saturday, which fell short of the anticipated 0.4% increase.

Additionally, investors continue to be apprehensive about the more severe economic repercussions of prospective tariffs that US President-elect Donald Trump may implement upon his re-entry into office in January of the following year. Despite the fact that USD buyers are taking a break after the previous week’s relentless rise, this anxiety continues to weigh on the bright metal.

Position adjustments are also implemented by gold traders prior to the publication of the critical US Consumer Price Index (CPI) inflation data on Wednesday. Nevertheless, the action of the Gold price in the forthcoming sessions may be exacerbated by the Veterans Day holiday in the United States.

The value of the USD and the price of gold will be significantly influenced by the broader market sentiment in the near future, as trading conditions are thinning due to the holiday season.