Gold price loses momentum for the third consecutive day on the higher US Treasury yields. The FOMC has signaled that it will not hike rates at its November meeting. The downbeat Chinese data raised concerns about the economic recovery in the world’s second largest economy. The FOMC meeting and press conference will be the closely watched events by traders. The yellow metal hovers around $1,984 after facing rejection to hold above the $2,000 mark.
China’s Manufacturing Purchasing Managers' Index came in at 49.5 in October from 50.2 expansion in September, below the market consensus of 50.2. Meanwhile, the Services PMI fell to 50.6 in October from the previous reading of 51.7, worse than the 51.8 expected. This, in turn, exerts some selling pressure on the gold price as China is the world's largest gold producer and consumer. Nonetheless, the elevated geopolitical risks in the Middle East might boost the safe-haven asset like gold.