• Gold hits a new ATH of $2,655 amid declining US Consumer Confidence and weakening US Dollar, XAU/USD trades at $2,651.
• Fed Governor Michelle Bowman signals a cautious approach to rate cuts.
• Geopolitical tensions in the Middle East also fuel safe-haven demand for Gold, driving the precious metal to new heights.

Gold prices hit a new all-time high (ATH) during Tuesday's North American session due to a deterioration in Consumer Confidence in the United States (US), according to data provided by the Conference Board. This, along with a dip in US Treasury yields and US Dollar weakness, sponsored a leg-up in the non-yielding metal. The XAU/USD trades at $2,651 after reaching an ATH of $2,655.

The Conference Board revealed that Consumer Confidence declined in September, hitting its lowest level since August 2021, due to growing concerns about the labor market and the overall economic outlook.

After the data, US Treasury bond yields edged lower with the 10-year T-note yielding 3.73%, declining by two basis points. At the same time, the US Dollar Index (DXY), which measures the Greenback’s performance against a basket of six currencies, tumbled to a two-day low of 100.48, down over 0.42%.

Meanwhile, Fed Governor Michelle Bowman, a noted hawk, stated that risks to inflation remain significant, expressing her preference for "a measured pace of cuts" to prevent the risk of reigniting inflation.