Elevated US bond yields lends support to USD and also undermine XAU/USD

Nevertheless, the data pointed to a resilient US economy and supports prospects for a further policy tightening by the Fed. This, in turn, pushes the US Treasury bond yields sharply higher and acts as a tailwind for the US Dollar (USD), which is seen as another factor weighing on the US Dollar-denominated Gold price. The downside, however, remains cushioned as traders now seem to have moved to the sidelines ahead of the release of the US monthly employment details. The popularly known Nonfarm Payrolls (NFP) report is due later during the early North American session and might influence expectations about the Fed's rate-hike path. This, in turn, will drive the USD demand and provide a fresh impetus to the XAU/USD