Gold attracted some sellers after rising to $4,110 during the day, moving away from its highest level in a week reached the previous day. The US dollar continued to be bought amid receding expectations of another interest rate cut by the Federal Reserve in December, which is expected to negatively impact the non-yielding precious metal. Furthermore, the prevailing optimism in global equity markets is another factor weakening demand for safe-haven assets.
The aforementioned background suggests that the path of least resistance for gold is downward. However, traders may choose to wait for the release of the September US non-farm payrolls report before forming new predictions regarding the direction of the gold pair. Furthermore, concerns about weakening economic momentum, stemming from the longest US government shutdown on record, could limit deeper losses for the precious metal.