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Gold price refreshes six-month low to 1,833.00

Gold price (XAU/USD) continues its losing spell despite the fact that Friday’s soft core Personal Consumption Expenditures (PCE) inflation vanishes odds of a hawkish interest rate decision from the Federal Reserve (Fed) in the November monetary policy meeting. The precious metal struggles for a firm footing as Treasury yields continue their bullish run as the Fed is expected to stick to the ‘higher for longer’ stance in interest rates. The US Dollar struggles to recapture the 11-month high near 106.80 as investors turn cautious ahead of the US Institute for Supply Management (ISM) Manufacturing PMI data for September, which will be published at 14:00 GMT. US factory activity has been contracting for the last 10 months and a continuation of the contracting spell is widely anticipated.

Gold price weakens after a bearish crossover by the 20-day and 200-day Exponential Moving Averages (EMAs). The precious metal sticks to the fresh six-month low near $1,840.00 and is expected to extend its downside journey towards the crucial support at $1,800.00. Momentum oscillators shift into a bearish trajectory, warranting more downside.