Gold price languishes near daily low amid Trump optimism-inspired USD buying

~Gold price drifts lower for the second straight day and is pressured by a combination of factors.

~The Trump trade optimism continues to underpin the USD and weighs on the precious metal. 

~Bets for less aggressive Fed rate cuts and elevated US bond yields undermine the XAU/USD.

Gold price (XAU/USD) adds to last week's heavy losses and remains under some selling pressure for the second straight day on Monday amid the underlying bullish sentiment surrounding the US Dollar (USD). The optimism over Donald Trump's anticipated expansionary policies keeps the USD close to a four-month top touched last week, which, in turn, is seen as a key factor undermining the commodity. 

Meanwhile, US President-elect Donald Trump's pledged 10% tariff on all US imports is expected to trigger a resurgence in inflation and restrict the Federal Reserve's (Fed) ability to ease aggressively. This, in turn, remains supportive of elevated US Treasury bond yields and contributes to driving flows away from the non-yielding yellow metal. That said, the cautious market mood could limit losses for the safe-haven XAU/USD.