Fundamental analysis of XAU/USD

Gold, previously considered a safe-haven asset, has been losing its appeal lately and has reached a five-week low. A strengthening US dollar and rising bond yields have put pressure on the precious metal, resulting in gold falling slightly to 1910.15 on Monday morning. The key driver of the decline was the report of a notable rise in producer prices in July, which pushed the US Dollar to levels not seen since the beginning of the month. 
 
The correlation between the US dollar and gold remains significant. As bond yields and trade rates rise, the dollar continues to strengthen. This dynamic worries gold as rising Treasury yields and rising interest rates increase the opportunity cost of maintaining positions in non-yielding assets such as gold. 
 
It promises to be a very important week for gold traders and investors. As China prepares to release retail and industrial data on Tuesday, along with expected US retail sales data, all eyes are on the minutes of the upcoming July Chinese government meeting and the release of FOMC minutes scheduled for Wednesday. Analysts expect a hawkish stance, which could put additional downward pressure on gold and possibly lead to its fall to the level of 1900.00. or even to 1875.00. There is a decrease in net long positions of speculators on gold, which reflects the current situation. 
 
The gloomy background for gold is complemented by the ongoing geopolitical uncertainties. Mixed signals from the US continue to muddy the waters for the dollar and, more broadly, for gold, as market participants eagerly await additional information from the Federal Reserve.
  
Technical analysis and scenarios:

The Alligator indicator points to a bearish trend. A wide open jaw, with the jaw (blue line) well above the lips and teeth (green and red lines), indicates a strong downtrend in the market.
The Awesome Oscillator (AO) and Accelerator Oscillator (AC) have readings in the red zone, solidifying the bearish sentiment. Given the current readings and the bearish sentiment shown by the Alligator, the more likely direction of XAU/USD in the coming days is downward.
Main scenario (SELL)
Recommended entry level: 1910.00.
Take Profit: 1900.00.
Stop Loss: 1915.00.
Alternative scenario (BUY)
Recommended entry level: 1923.00.
Take profit: 1930.00.
Stop loss: 1917.00.