• Gold stumbles after peaking at $2,391 amid revived risk appetite.
• Mixed US jobs data fuel speculation of an imminent Federal Reserve rate cut.
• China's PBoC halts Gold purchases, impacting bullion prices alongside falling Treasury yields.

The Gold price made a U-turn on Monday, trimming some of last Friday's gains and tanking more than 1% as risk appetite returned. US equities posted gains while US Treasury bond yields edged lower. The XAU/USD trades at $2,358 after hitting a daily high of $2,391.

Last week’s US NFP report was mixed. June figures exceeded estimates, but April’s and May’s downward revisions hinted that the US jobs market is cooling sharply. Consequently, the US Unemployment Rate ticked higher, spurring speculation that the Federal Reserve could slash interest rates sooner than expected.

Bullion prices were also hurt by the People Bank of China’s (PBoC) decision not to buy Gold in June, as in May, China held 72.80 million troy ounces of the precious metal at the end of June.

The US 10-year Treasury bond yield fell almost two basis points to 4.27%, reflecting that market players expect the Federal Reserve to lower borrowing costs amid the chances of hurting the labor market.

According to data from the CME FedWatch Tool, investors are pricing in 73% odds of a Fed rate cut in September, up from 71% last Friday.

The US economic docket will feature Fed Chairman Jerome Powell's semi-annual Congressional Testimony and the release of inflation figures on the consumer and producer sides. Initial Jobless Claims and the University of Michigan Consumer Sentiment will also complement the schedule.