Gold price (XAU/USD) is down 0.8% to near $4,140 during the European trading session on Monday.
The precious metal faces selling pressure as the three-day rally hits a pause after failing to extend above $4,202
Bullions come under pressure as the US Dollar (USD) bounces back after a negative week. At press time, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades 0.22% higher to near 101.10. Technically, a higher US Dollar makes the Gold price an unfavorable risk-reward bet for investors.
Last week, the US Dollar fell sharply after traders slightly trimmed the Federal Reserve’s (Fed) hawkish interest rate expectations, following the release of the United States (US) Nonfarm Payrolls (NFP) data for June. The US NFP report showed that the economy created 57K fresh jobs, significantly lower than estimates of 110K. According to the CME FedWatch tool, the odds of the Fed delivering at least one interest rate hike by the end of September are 53.2%, down from 59.4% seen a week ago.