Gold Price Forecast: XAU/USD snaps the three-day losing streak near $2,060, FOMC Minutes eye

• Gold price gains momentum near $2,060 despite renewed USD demand.
• The markets have priced in no hike for the January meeting and forecasted rate cuts for March and May 2024.
• China's average daily home sales during the three-day New Year holiday in 40 cities dropped by 26% compared to last year.
• Market players will monitor US ISM Manufacturing PMI and FOMC Minutes on Wednesday.

Gold price (XAU/USD) snaps the three-day losing streak during the early Asian section on Wednesday. The yellow metal edges higher despite a stronger US Dollar (USD). At press time, gold price is trading around $2,060, up 0.13% for the day.

Meanwhile, the US Dollar Index (DXY), a measure of the value of the USD against a weighted basket of currencies used by US trade partners, trades in positive territory for the fourth consecutive day. The DXY bounces off 100.60 and hovers around 102.20. The Treasury yields edge lower, with the 10-year yield standing at 3.94%.

That being said, the potential rate cuts from the Federal Reserve (Fed) might cap the Greenback’s upside and lift the USD-denominated commodities. The markets have priced in no hike for the January meeting and forecasted rate cuts for March and May 2024, according to the CME FedWatch tool.

On Tuesday, the US final Manufacturing PMI arrived at 47.9 in December from 48.2 in the previous reading, below the market consensus. Last week, the US Chicago Purchasing Managers' Index (PMI) came in at 46.9 versus 55.8 prior, worse than the market expectation of 51.0.

China's average daily home sales during the three-day New Year holiday in 40 cities, dropped 26% compared to the same time last year, according to Reuters on Tuesday. Top Chinese authorities acknowledged resolving real estate risks and supporting steady and healthy market growth at a key conference in December to plan the economic route for 2024. The positive developments surrounding the Chinese economy might boost yellow metal as China is one of the world's largest Gold consumers.

Moving on, the final US ISM Manufacturing PMI report and the Fed’s latest Meeting Minutes are due on Wednesday. The attention will shift to the US labor data on Friday. The NFP figure is expected to show an increase of 163K in December versus 199K in November. The Unemployment Rate is estimated to climb to 3.8%, while December’s Average Hourly Earnings are expected to grow 0.3% MoM. Traders will take cues from these figures and find trading opportunities around the gold price.