Gold Price Forecast: XAU/USD stops shining after falling near $100 in two days

• Gold plummets for two days, falling below $100, challenging its traditional safe-haven status amid the growing appeal of the dollar.
• The Dollar Index (DXY) gained 0.29% to 103.93, highlighting a change in market sentiment towards the Dollar.
• The US economy continues to resist after the ISM non-manufacturing PMI exceeded expectations at 52.7 points.
• The JOLT report reveals a record level of vacancies, suggesting the labor market is easing.

The price of Gold extended its losses for the second day in a row after reaching an all-time high (ATH) above $2,100, and has fallen more than $100 in two days of trading. Although the risk aversion impulse is the main driver and usually reinforces the appetite for the yellow metal, traders are opting for the Dollar. Consequently, XAU/USD is trading at $2,018.00, down 0.54% after reaching a daily high of $2,041.

Gold is at the mercy of sellers, who had turned dollar bulls, as US bond yields also fell

Market sentiment remains sour, with flows shifting towards the Dollar, as shown by the Dollar Index (DXY). The DXY, which tracks the currency’s performance against six rivals, posted gains of 0.29% to 103.93. In contrast, US Treasury yields are reversing some of their gains from Monday and falling with no fundamental reasons behind them.

In terms of data, the US Department of Labor reported that October job postings (JOLT) hit their lowest level in more than two and a half years. JOLT stood at 8,733 million, below forecasts of 9.3 million and 9.35 million in September. Other data suggests the economy remains strong, although Atlanta Now’s GDP continues to show the economy in the fourth quarter will likely grow below the 2% threshold. The November ISM Non-Manufacturing PMI rose to 52.7, beating estimates of 52, and the latest reading is 51.8.

Additional employment data will be released throughout the week, and traders will be on the lookout for other data that could clear the way in Gold’s direction. On Wednesday, the ADP Employment Change would be followed by the Initial Claims Thursday’s unemployment benefit, to end with Friday’s Nonfarm Payrolls report.

XAU/USD Price Analysis: Technical Outlook

After dipping below $2,050, XAU/USD tested the October 27 high of $2,009.42 before reversing course towards the current spot price. If buyers reclaim $2,040, this could open the door to testing the November 29 high of $2,052.13. Breaking this last level would expose the previous all-time high of $2,081.82, before a recovery to $2,100. Conversely, if non-yielding metals fall below $2,009.42, a drop to $2,000 is expected.