Gold Price Forecast: XAU/USD glitters no more after diving close to $100 in two days

Gold price extended its losses for the second straight day after reaching an all-time high (ATH) above the $2,100 figure, and it has dived more than $100.00 in two days of trading. Even though a risk-off impulse is the primary driver and usually bolsters appetite for the yellow metal, traders are shifting to the Greenback. Consequently, the XAU/USD is trading at $2018.00, down 0.54% after hitting a daily high of $2041.

Gold’s at the mercy of sellers, which had turned US Dollar bulls, as US bond yields also fell

Market sentiment remains sour, with flows going to the Greenback, as shown by the US Dollar Index (DXY). The DXY, which tracks the currency’s performance against six rivals, posted gains of 0.29% at 103.93. On the contrary, US Treasury bond yields are reversing some of their Monday gains and dropping with no fundamental reasons behind them.

On the data side, the US JOLTs report for October revealed that vacancies hit their lowest level in more than two and a half years, showed the Department of Labor. JOLTs stood at 8.733M, below forecasts of 9.3M and September’s 9.35M. Other data suggests the economy remains solid, even though the Atlanta GDP Now continues to show the economy in the fourth quarter, most likely growing below the 2% threshold. The ISM Non-Manufacturing PMI in November expanded to 52.7, exceeding estimates of 52, and the latest reading is 51.8.

Ahead of the week, additional jobs data will be revealed, as traders look for further data that could clear the path on Gold’s direction. On Wednesday, the ADP Employment Change would be followed by Thursday’s Initial Jobless Claims, to finish on Friday’s Nonfarm Payrolls report.

XAU/USD Price Analysis: Technical outlook

After diving below $2,050, the XAU/USD tested the October 27 high of $2,009.42 before reversing its course toward the current spot price. If buyers reclaim $2,040, that could open the door to tests of the November 29 high of $2,052.13. A breach of the latter would expose the previous YTD high of $2,081.82 before rallying to $2,100. On the flip side, if the non-yielding metal slips below $2,009.42, a drop to $2,000 is on the cards.