The price of gold (XAU/USD) is facing downward pressure due to a stronger US Dollar (USD)

Thursday, the price of gold (XAU/USD) is facing downward pressure due to a stronger US Dollar (USD) and higher Treasury yields. Gold is currently trading at around $1,876, with a modest 0.11% gain for the day.

Simultaneously, the US Dollar Index (DXY), which measures the USD against other currencies, has surged above 106.65, its highest level since November. Furthermore, the 10-year Treasury yield is at 4.60%, its highest since 2007.

A positive turn came from the US Census Bureau's report on Wednesday, showing that Durable Goods Orders for August increased by 0.2% MoM, surpassing expectations of a 0.5% decline. This, along with other positive economic data, boosted the US Dollar and put pressure on gold.

Market sentiment is cautious, considering the possibility of a government shutdown in the US and expectations for higher interest rates. However, investors are also watching for Federal Reserve Chair Jerome Powell's speech, which could potentially influence the USD and gold prices.

Thursday will see the release of US weekly Jobless Claims, GDP revisions, Pending Home Sales data, and Friday will bring the Core Personal Consumption Expenditure Price Index. Traders will closely analyze these events for opportunities in the gold market.

Gold reached its 1875 support level continuing the make selloff direction. As Dollar and yields leading the market Gold will not have a chance to make a possible reversal up.