• Gold price edges lower for the second successive day amid some follow-through US Dollar buying.
• Bets for another 25 bps Fed rate-hike in June push the US bond yields higher and underpin the USD.
• The prevalent risk-on mood contributes to driving flows away from the non-yielding yellow metal.

Gold price edges lower for the second successive day on Monday and remains depressed through the first half of the European session. The XAU/USD is currently placed just above the $1,940 level, with bears awaiting a sustained break through the 100-day Simple Moving Average (SMA) before positioning for an extension of the recent pullback from an all-time peak.

Stronger US Dollar weighs on Gold price

The US Dollar (USD) builds on Friday's rebound from over a one-week low, touched in the aftermath of the mixed employment details from the United States (US), and turns out to be a key factor weighing on the Gold price. It is worth recalling that the headline Nonfarm-Payrolls showed that the US economy added 339K jobs in May, higher than the 294K reported in the previous month and smashing estimates for a reading of 190K. This could allow the Federal Reserve (Fed) to stick to its hawkish stance to bring down stubbornly higher inflation, which continues to push the US Treasury bond yields higher and underpin the USD.