Fundamental analysis of XAU/USD

Gold (XAU/USD) turned negative for the second day in a row and remained below the 2000.00 mark amid the Federal Reserve's tight action on the 2% inflation target. This is largely due to the fact that they are expected to remain positive. These expectations have driven US Treasury bond yields higher, revitalized demand for the US dollar and put downward pressure on yield-neutral gold. 
Prices remain below the 2000.00 mark despite gold rising 8% for the month due to geopolitical instability. This trend reflects continued market concerns about the possibility of escalating tensions in the region despite Israeli mediation in the Gaza Strip. Another important factor is the FOMC policy meeting, which will take place over two days starting Tuesday. The US Federal Reserve is expected to keep interest rates unchanged in the 5.25-5.50% range, the highest in 22 years. The decision is being closely watched by the markets as it could have a significant impact on the volatility of the US dollar and consequently the price of gold. After bond yields hit a peak of 5% last month, speculation has increased regarding the Federal Reserve's efforts to ensure economic stability. 
Key economic reports coming out this week, including the jobs change and the September employment report, are also expected to weigh on the gold market. In the near term, sentiment in the gold market looks cautiously optimistic. While geopolitical factors are driving demand, potential volatility caused by central bank decisions will be offset by the current economic environment characterized by rising Treasury yields and a strengthening US dollar.
Technical analysis and scenarios:

Alligator: Hungry with a clear uptrend, indicating bullish momentum. The jaw (blue line) is below the lips and teeth (green and red lines), supporting the view that there is a bullish trend. Awesome Oscillator (AO) and Accelerator Oscillator (AC): Both are in the gray zone, showing divergence. This divergence suggests that although the market is bullish, a trend reversal or a slowdown in bullish momentum is possible. Given the current momentum, XAU/USD may try to test the first resistance at 2005.00. If it breaks this level, the next targets will be 2010.00 and 2015.00.
Main scenario (BUY)
Recommended entry level: 2005.00.
Take Profit: 2010.00.
Stop loss: 2002.00.
Alternative scenario (SELL)
Recommended entry level: 1885.00.
Take profit: 1880.00.
Stop loss: 1888.00.