Gold price trades in positive territory for a consecutive day on Tuesday amid the softer USD.
A downbeat US jobs data for April prompted speculation of potential rate cuts by the Fed in the coming months.
Investors will keep an eye on Fed’s Kashkari’s speech later on Tuesday.
Gold price (XAU/USD) extends its recovery on Tuesday. The uptick of the yellow metal is bolstered by the weaker US dollar (USD) after recent US Nonfarm Payrolls (NFP) data boosted bets that the Federal Reserve (Fed) would cut interest rates later this year. The expectation of an easing cycle might lift the gold price as it makes gold a cheaper option for foreign buyers to purchase. Furthermore, strong central bank purchases and demand from Asian markets remain to support the precious metal in the near term.
Nonetheless, the signs of ongoing political tensions in the Middle East might boost the safe-haven flows and benefit the gold price. Fed Bank of Minneapolis President, Neel Kashkari, is scheduled to speak later on Tuesday. The hawkish tone from the Fed officials might support the USD and weigh on the USD-denominated gold.
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