Gold price attracts dip-buyers on Tuesday, albeit the uptick lacks bullish conviction.
Sliding US bond yields undermine the USD and lends some support to the XAU/USD.
Geopolitical risks also benefit the safe-haven metal, though the upside seems limited.
Gold price (XAU/USD) regains some positive traction following the previous day's modest pullback and holds steady above the $2,030 level during the Asian session on Tuesday. A fresh leg down in the US Treasury bond yields keeps the US Dollar (USD) bulls on the defensive, which, in turn, is seen acting as a tailwind for the commodity. Apart from this, a generally softer tone around the equity markets further benefits the precious metal's relative safe-haven status and remains supportive of the uptick.
That said, the Federal Reserve's (Fed) hawkish outlook for higher-for-longer interest rates might keep a lid on any meaningful appreciating move for the non-yielding Gold price. Traders might also refrain from placing aggressive directional bets and prefer to wait for the release of the US Personal Consumption Expenditures (PCE) Price Index on Thursday for cues about the likely timing of when the Fed will start cutting rates. This might further contribute to capping the upside for the precious metal
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