Gold Price Forecast: XAU/USD attracts some sellers below $1,980, FOMC Meeting Minutues eyed

Gold price (XAU/USD) loses traction during the early Asian trading hours on Monday. The softer US Dollar (USD) and a decline in US Treasury bond yields might lift the precious metal, Gold price currently trades around $1,978, losing 0.14% on the day.

The US housing data for October came in better than expected on Friday. The Housing Starts climbed 1.9% MoM to 1.372M, better than the estimation of 1.35M. Building Permit grew 1.1% to 1.487M, above the market consensus of 1.45M. Many Federal Reserve (Fed) officials pushed back against rate cut estimates for 2024, while money markets show traders have priced in 100 basis points (bps) of easing towards December of the next year.

Boston Federal Reserve (Fed) President Susan Collins voiced optimism on Friday that the central bank might bring down inflation without causing major harm to the labor market by being "patient" with the next interest rate rises. Additionally, Fed President Austan Goolsbee said that inflation is on pace to meet the Fed's target as long as house price pressures decrease.

Meanwhile, the US dollar Index (DXY), an index of the value of the USD measured against a basket of six world currencies, posts its worst weekly decline since mid-July, hovering around 103.45. That being said, a weaker USD might boost the USD-denominated gold.

Last week, US President Joe Biden and China President Xi Jinping met each other for the first time since November 2022. Although the meeting brought certain concrete outcomes, it is doubtful that US-China ties will improve much in the near future. A renewed tension between the two world’s largest economies might benefit safe-haven assets like gold.

Moving on, gold traders will closely monitor the FOMC Meeting Minutues on Tuesday for further impetus. Later this week, the US Durable Goods Orders will be due on Wednesday. The preliminary US S&P Global Manufacturing PMI for November will be released on Friday. Traders will take cues from the data and find trading opportunities around the gold price.