Gold continued its decline since last weekend in the range around $2,640 as US Treasury bond yields limited the yellow metal's gains.
In addition, the escalation of the Middle East conflict continues to protect its position from further decline in the impetus of the strengthening of the US dollar currency.
At 9.25am, the price of gold was at $2,640.34, down 0.09% since it opened in early trading on Tuesday.
The market mood has deteriorated due to the war in the Middle East. The exchange of fire continued as Israel continued its ground operations in Lebanon while Hamas fired rockets at Tel-Aviv.
Hopes of a ceasefire faded as the conflict widened to involve other groups such as the Houthis attacking ships in the Red Sea.
Meanwhile, the famous US Non-Farm Payrolls (NFP) report in September triggered a jump in US Treasury bond yields.
Market sentiment is now in favor of the USD currency by seeing the US Dollar Index (DXY) at 102.52 which is the level around last August.
Next week, US economic data will feature inflation releases, Minutes of the last Fed Meeting, unemployment claims and University of Michigan Consumer Sentiment.
