XAU/USD consolidates its losses around $1,960 on higher US bond yields

• Gold price remains confined around $1,960 on the higher USD and US Treasury bond yield.
• The anticipation for an FOMC rate hike in the December and January meeting priced at zero.
• Gold traders will focus on China’s House Price Index, US Initial Jobless Claims.

Gold price (XAU/USD) consolidates its recent losses during the early Asian session on Thursday. The precious metal faces a rejection of $1,975 and currently trades around $1,960. That being said, the rebound of the US dollar (USD) and the higher US Treasury bond yields exert some selling pressure on the gold price.

Meanwhile, the US dollar Index (DXY), an index of the value of the USD measured against a basket of six world currencies, hovers around 104.40 after bouncing off a 103.98 low. The US Treasury bond yields edge higher, with the 10-year yields standing at 4.53%.

On Wednesday, the US Producer Price Index (PPI) fell 0.5% MoM in October from a rise of 0.4% in September, below the market expectation of a 0.1% rise. The annual PPI figure came in at 1.3% versus 2.2% prior. The Retail Sales dropped by 0.1% in October, against expectations of a fall of 0.3%. The expectations for an FOMC rate hike in December and January meeting priced at zero, and the market anticipates that the central bank will begin cutting interest rates in the middle of 2024.

Additionally, the stronger Chinese data could cap gold’s downside, as China is the world’s largest gold producer and consumer. China’s House Price Index for October on Thursday will be in focus.

Moving on, the US Initial Jobless Claims for the week ending November 10 will be released. Traders will also take cues from the Fed officials’ speeches, including John Williams, Christopher Waller, Lisa Cook, and Loretta J. Mester. These events could give a clear direction to the gold price.