Gold price falls gradually on risk-on mood, yields revival, neutral Fed bets

• Gold price pares some gains as US long-term bond yields rebound.

• The precious metal fails to hold gains inspired by soft US Nonfarm Payrolls data.

• Investors anticipate the Fed is done hiking interest rates.

Gold price (XAU/USD) trades around $1,985 on Monday, retreating from Friday’s highs at over $2,000, as US long-term bond yields rebound. The yellow metal is paring back some of the gains registered on Friday after the release of the US employment report for October, which showed softer growth in both jobs and wages. Despite the recent retreat, Gold’s downside remains cushioned by persistent geopolitical tensions in the Middle East as the Israeli authorities reject the proposal for a ceasefire, keeping safe-haven bids firm.

The US Dollar remains on the backfoot as market participants now view the US labor market loosening, which would allow Fed policymakers to advocate for keeping interest rates unchanged in the range of 5.25%-5.50% till the end of 2023. US export orders have fallen sharply due to higher exchange rates for the US Dollar.