The preliminary third-quarter GDP figures indicated that US economic growth accelerated to an annualised rate of 3.4%, compared with 2.2% in the previous quarter, exceeding market expectations of 3.2%. Meanwhile, the Personal Consumption Expenditures (PCE) Price Index increased by 0.5% in September, bringing annual inflation to 3.6%. Core PCE inflation, which excludes food and energy prices, rose by 0.3% month-on-month and 3.1% year-on-year. Persistent inflationary pressures, combined with elevated US Treasury yields, have strengthened expectations that the Federal Reserve may maintain a restrictive monetary policy or consider further interest rate hikes. However, US Treasury yields declined as investors shifted towards safe-haven government bonds following disappointing technology earnings, raising concerns about whether substantial investments in artificial intelligence will generate adequate returns. At the same time, renewed optimism surrounding potential diplomatic efforts to resolve Middle Eastern conflicts weakened the US Dollar for a third consecutive session. Nevertheless, the decline in the USD has provided limited relief to gold prices, as broader bearish factors continue to weigh on the precious metal. Recent diplomatic developments, including US Vice President JD Vance's communication with Iran's Supreme National Security Council and Qatar's proposed draft agreement aimed at ending the conflict involving Iran, the US and Israel, have raised hopes of a possible resolution. Despite these diplomatic efforts, geopolitical uncertainty remains elevated due to escalating tensions involving the Iran-backed Houthi group and Saudi Arabia. Additionally, threats by the US and Israel to resume military operations following the US midterm elections have maintained a significant geopolitical risk premium in financial markets. Concerns have also intensified after Iran's navy claimed that four oil tankers had struck sea mines in the strategically important Strait of Hormuz, increasing fears of potential supply disruptions and supporting oil prices. These developments could encourage renewed demand for the US Dollar, potentially limiting gold's upside and reinforcing its bearish outlook. Consequently, any recovery in gold prices may attract fresh selling pressure, with the XAU/USD pair remaining on track to record a monthly decline of approximately 3.5%.