Gold Price Forecast: XAU/USD climbs to a six-month highs near $2,015 on the USD weakness, eyes on the US data

Gold price (XAU/USD) extends the rally above the $2,000 key level during the early Asian trading hours on Tuesday. The yellow metal climbs to a six-month high amid the softer US Dollar (USD) and the lower US Treasury bond yields. Gold price currently trades near $2,015, losing 0.01% on the day.

Meanwhile, the US Dollar Index (DXY) declined to the lowest level since late August around 103.20, which lifts the USD-denominated gold. The Treasury yields edge lower, the 10-year dropping from 4.51% to 4.39%.

That being said, the softer US data dragged the Greenback lower. The US Census Bureau revealed on Monday that the October New Home Sales fell by 5.6% m/m to 679k, below the market consensus of 725K. Additionally, the Dallas Fed Manufacturing Index for November arrived at -19.9 from the previous reading of -19.2.

Furthermore, the expectation of lower inflation weighs on the USD and increases investors' appetite for commodities. Last week, the US PMI data suggested that the private sector in the US continued to grow at a slower pace in early November. The markets place a bet that the Federal Reserve (Fed) will cut interest rates in the middle of next year.

China will release the NBS Purchasing Managers Index (PMI) data on Thursday. The Manufacturing and Services PMI figures are expected to improve to 49.6 and 51.1, respectively. If the report shows the weaker-than-expected result, this could exert some selling pressure on the precious metal as China is the world's largest gold producer and consumer

Moving on, gold traders will focus on the US Housing Price Index, the S&P/Case-Shiller Home Price Indices, CB Consumer Confidence, and the Richmond Fed Manufacturing Index on Tuesday. Later this week, the attention will shift to the US Gross Domestic Product (GDP) on Wednesday and the Personal Consumption Expenditure (PCE) inflation figures on Thursday.