Gold has been struggling since the past few sessions amid a still-firming dollar and a marked reduction in tensions on the Korean peninsula. The greenback climbed on Monday against most major currencies after stronger than expected US manufacturing data was released. The sentiment in bullion was also hit after Dallas Federal Reserve President Robert Kaplan said the Central Bank needs to “look hard” at whether it should hike interest rates in December. Higher rates typically tend to lift the dollar and push yields up, both of which historically have proven to be headwinds for gold. XAUUSD is currently trading around $1272.00 per troy ounce with $1268.00 representing the immediate downside support. The short-term trend is decisively bearish, meaning any breach of support could see gold prices slip towards levels closer to $1260.00 per ounce.