Gold prices stuck as US Treasury yields keep rising 

Gold prices could be volatile this week as a series of new US economic data is likely to reshape expectations about the Federal Reserve's interest rate path...

Gold prices fell slightly in the trading session on Monday and then increased slightly this morning (October 29), as US Treasury yields and the USD continued to rise, putting downward pressure on the precious metal market. This week, gold prices may fluctuate due to a series of new US economic data that is likely to reshape expectations about the Federal Reserve's interest rate path.

At the close of the first session of the week in the New York market, spot gold prices fell by 6.9 USD/oz compared to the closing price of the previous session, equivalent to a decrease of 0.25%, to 2,741.8 USD/oz - according to data from the Kitco exchange.

US Treasury yields hit a three-month high on Monday. The 10-year yield rose 4 basis points to 4.274%, its highest since July. The 2-year yield rose 3 basis points to 4.131%.

The Dollar Index, which measures the strength of the greenback against a basket of six major currencies, closed at 104.32, up slightly from last week's close. During the session, the index reached 104.55, its highest since late July.

Analysts said this week could see many fluctuations in global financial markets, including the gold market, partly because this is the last week before the US presidential election on November 5 and the US Federal Reserve's interest rate decision on November 7.

There are also a number of important US economic data releases this week, including a preliminary report on third-quarter gross domestic product (GDP) growth due on Wednesday; the Fed's preferred measure of inflation, the personal consumption expenditures (PCE) price index, on Thursday; and the non-farm payrolls report on Friday.

All of these figures could have a strong impact on the Fed's interest rate path in the coming period, thereby affecting gold prices.

Demand for gold as a hedge against geopolitical risks in the Middle East eased on Monday as tensions eased. Israel did not target Iran's oil facilities in its airstrikes over the weekend, as had been feared.

However, some analysts believe that gold prices still have the potential to rise sharply this week.