Gold price holds steady ahead of US macro data release
Gold price (XAU/USD) maintains its bid tone heading into the European session on Tuesday and currently trades just above the $2,750 level, well within the striking distance of the record high touched last week. Against the backdrop of geopolitical risks, the US political uncertainty turns out to be a key factor acting as a tailwind for the safe-haven precious metal. Apart from this, a softer tone surrounding the US Treasury bond yields and the cautious market mood lend additional support to the commodity.
Meanwhile, bets for smaller rate cuts by the Federal Reserve (Fed) should act as a tailwind for the US bond yields and help the US Dollar (USD) to tall the previous day's retracement slide from a three-month high. This, in turn, is holding back traders from placing fresh bullish bets around the non-yielding Gold price. Investors might also prefer to wait on the sidelines ahead of this week's important US macro releases, which should offer cues about the Fed's rate outlook and provide a fresh impetus.
Source: FXStreet