Gold price trend: The rebound is just a flash in the pan, three factors are bearish on the prospect of gold!

Risk factors boost gold prices, alert to challenges posed by the Federal Reserve
Gold prices rose sharply on Friday, buoyed by a slightly lower dollar and a hit to risk sentiment. However, risk sentiment was mainly affected in the United States and Europe, and to a lesser extent. One of the largest strikes by the United Auto Workers union (UAW) began on Friday, leaving the auto industry weakened. Meanwhile, the tech-heavy Nasdaq 100 was hit by news that Taiwan Semiconductor Manufacturing Company (TSMC) was asking suppliers to delay deliveries. Another factor in market jitters was a visit by North Korean leader Kim Jong Un to a Russian jet factory. As the war in Ukraine drags on, Moscow is trying to win over its neighbors.
Gold, as a natural safe-haven asset, tends to rise on such news, and this has proven to be the case. However, this rebound in gold prices may only be short-lived, as the upcoming Federal Reserve interest rate decision may bring huge challenges to gold price trends.
Higher-than-expected headline inflation in August should be enough for Jerome Powell to stress that the Fed will keep interest rates on hold. Rising oil prices had an impact on headline inflation last month - which could keep the U.S. dollar well-supported, potentially putting pressure on gold.
The Federal Reserve will also release a summary of its economic forecasts this time. If it releases information about interest rates peaking, it may mean another interest rate hike before the end of the year. However, given the sharp rise in oil prices, the market will pay close attention to inflation forecasts. If the Fed, like the ECB, sees upside risks to the inflation outlook, the dollar could strengthen further, putting pressure on gold.
Gold Price Technical Analysis: Breakout Not Confirmed Yet
At the end of last week, gold prices tested the 200-day simple moving average (SMA), with short-term resistance focused on $1,937. On Friday's daily chart, gold prices were already showing weakness at $1,930, as they were last Monday. Support is focused on $1,915, followed by a swing low of $1,901.
Japan’s potential FX intervention could impact gold prices
The U.S. 10-year Treasury bond yield continues to move higher. As of this writing, the U.S. 10-year Treasury bond yield is about 4.33%, trying to refresh the annual high of 4.36% reached in August. U.S. Treasury yields have been in focus recently, especially if Japan's Ministry of Finance instructs the Bank of Japan to intervene in foreign exchange markets to defend the yen.
As the world's largest holder of U.S. Treasuries, Japan may decide to sell its Treasuries to obtain U.S. dollars and sell those dollars in exchange for yen. Since bond prices are inversely related to yields, a sell-off in U.S. Treasuries would push yields higher — which could pose greater challenges for gold prices.
(Source: Dailyfx-Richard Snow)