Gold price (XAU/USD) trims intraday losses near $1,955 amid early Monday morning in Europe. In doing so, the bright metal rebounds from a one-week low marked earlier in the day as traders reassess the week-start challenges to the sentiment that initially favored the US Dollar strength.

US Dollar Index (DXY) retreats from an intraday high of 103.05 to 102.90 as the early-day risk aversion fades amid receding hawkish bets on the Federal Reserve (Fed). Also challenging the greenback’s gauge versus the six major currencies are the concerns suggesting China and Brazil’s dropping of the US Dollar for cross-border trade.

It’s worth noting that the Organization of the Petroleum Exporting Countries (OPEC) and its allies led by Russia, known as OPEC , announced 1.16 million barrels per day of output cut and renewed inflation fears earlier in the day. The same exert downside pressure on the Gold price via a firmer US Dollar. However, easing hopes of another strong rate hike from the US Federal Reserve (Fed) seems to weigh on the US Dollar and allow the Gold price to lick its wounds.

As per the latest readings of CME’s FedWatch Tool, market players place nearly 42% probability on the 0.25% Fed rate hike in May, versus 52% marked on Friday.

Elsewhere, softer China Caixin Manufacturing PMI jostles with the Sino-American tension the market’s pre-NFP caution to challenge the XAU/USD traders.

Moving on, US ISM Manufacturing & S&P Global Manufacturing PMI could entertain Gold traders ahead of Friday’s US jobs report.