• Gold price loses ground as US Dollar improves on Tuesday.
• The improvement in US Treasury yields could impact the non-yield assets like Gold.
• Investors await FOMC minutes to gain the Fed's perspective on the interest rate trajectory.

Gold price moves slightly lower on Tuesday after halting its three-day winning streak, inching lower to near $2,018 per troy ounce during the Asian trading hours. Prices of the yellow metal encounter a challenge due to the strengthening US Dollar (USD), which can be attributed to higher US bond yields. This upward movement in bond yields has exerted downward pressure on non-yielding assets like Gold.

Furthermore, market participants are eagerly awaiting the release of the Federal Open Market Committee (FOMC) meeting minutes scheduled for Wednesday. This release could provide insight into the Federal Reserve's perspective on the future trajectory of interest rates.

However, ANZ forecasted that the Federal Reserve (Fed) will initiate the rate-cutting cycle starting from July 2024. According to the CME FedWatch Tool, there is a 53% possibility of a 25 basis points rate cut by the US Fed in the June meeting.

The recent dovish remarks from the Fed officials suggesting rate cuts in 2024 undermined the US Dollar on Monday. San Francisco Federal Reserve President Mary C. Daly mentioned that three rate cuts are a reasonable baseline for 2024. Additionally, St. Louis Federal Reserve (Fed) president, James Bullard suggested Federal Reserve consider lowering interest rates at its March meeting.

The US Dollar Index (DXY), which gauges the value of the US Dollar against six other major currencies, ends its four-day losing streak. The DXY trades higher around 104.40, with 2-year and 10-year yields on US bond coupons standing at 4.65% and 4.30%, respectively, at the current time.