Gold Price Forecast: XAU/USD extends sideways grind below $1,800
- Gold price continues to fluctuate in a narrow range below $1,800.
- 10-year US Treasury bond yield edges lower but holds above 3.5%.
- Markets are likely to remain choppy ahead of this week's key events.
Gold price is moving up and down in a tight range below $1,800 on Monday after having declined modestly during the Asian trading hours. The market action is expected to remain choppy at least until the November inflation report from the US on Tuesday.
XAU/USD closed the previous week virtually unchanged as investors refrain from making large bets ahead of this week's key macroeconomic data releases and central bank decisions. Following the Consumer Price Index (CPI) data, the US Federal Reserve will announce its interest rate decision and publish the updated Summary of Economic Projections (SEP), the so-called 'dot plot.'
Meanwhile, the benchmark 10-year US Treasury bond yield is edging lower during the European trading hours but managing to hold above the key 3.5% mark for the time being.
Later in the session, the 10-year US Treasury note auction will be watched closely by market participants. In the previous auction, the high yield was 4.14%. In case the high yield stays above 4% following the auction, the 10-year US T-bond yield could gain traction.
It's also worth noting that US stock index futures are up between 0.2% and 0.4%. If risk flows dominate the market action in the second half of the day, the US Dollar could have a difficult time finding demand.
Technical levels to watch for