Gold price struggles to gain any meaningful traction, though the downside seems cushioned.
The Fed projected three rate cuts in 2024, which undermines the USD and continues to lend support.
Tuesday’s US macro data to provide some impetus ahead of the US PCE Price Index on Friday.
Gold price (XAU/USD) struggles to capitalize on the previous day's modest gains and oscillates in a narrow band around the $2,170 level during the Asian session on Tuesday. Meanwhile, the fundamental backdrop warrants some caution before placing aggressive bearish bets around the precious metal and positioning for an extension of the recent sharp pullback from a record peak near the $2,223 region touched last Thursday.
The Federal Reserve (Fed) last week projected a less restrictive monetary policy going forward and signaled that it remains on track to cut interest rates by 75 basis points this year. This, in turn, keeps the US Dollar (USD) bulls on the defensive and acts as a tailwind for the non-yielding Gold price. Apart from this, rising geopolitical tensions further seem to underpin the safe-haven XAU/USD and should help limit any meaningful slide.
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