Gold prices are still struggling to attract bids, and the path of the least resistance seems skewed to the downside for the time being. The reason is that on Friday, the US nonfarm payrolls (NFP) data confirmed that the US economy is faring well, and traders do not need to worry about a hard landing.
The data was robust, and the number was solid, and this has increased the odds that the Fed will keep a hawkish monetary policy in place, proving to be a positive thing for the US dollar. The strength in the dollar index is causing the gold price to move lower.
Traders have been hoping that the Fed will shift its gear from an ultra-hawkish monetary policy stance to a somewhat hawkish stance. However, the US NFP data has put cold water on those hopes as the Fed watches those numbers very closely. So overall, no good story can support a bull case for gold prices.
In terms of technical, the shinning metal is struggling to move higher above the 50-day SMA, a sign of weakness for price action. If we do not see the price moving above this average, it is possible that the path of the least resistance could remain skewed to the downside.