• Gold price attracts some sellers and snaps a two-day winning streak amid a bullish USD.
• Expectations for a less aggressive Fed easing underpin the US bond yields and the buck.
• Geopolitical risks and bets that the Fed will cut rates further limit losses for the XAU/USD. 

Gold price (XAU/USD) rallied over 1% on Friday and settled near the weekly top following the release of the US Producer Price Index (PPI), which pointed to a favorable inflation outlook and suggested that the Federal Reserve (Fed) will cut interest rates further. Apart from this, safe-haven demand stemming from the geopolitical tensions in the Middle East further benefited the bullion and contributed to the move up. 

That said, investors have now fully priced out the possibility of another oversized Fed rate cut in November. This keeps the US Treasury bond yields elevated and the US Dollar (USD) close to its highest level since mid-August touched last week. Adding to this, the optimism led by China's pledge to increase debt to revive its economy exerts some pressure on the Gold price during the Asian session on Monday.