Gold price sticks to modest intraday gains; lacks bullish conviction amid risk-on mood.
Gold price (XAU/USD) attracts some dip-buyers on Tuesday, though it lacks follow-through and remains below a one-month top touched the previous day heading into the European session. Reports that US President-elect Donald Trump's top economic advisers are mulling a slow ramp-up in tariffs to prevent a sudden spike in inflation trigger a modest pullback in the US Treasury bond yields and benefit the non-yielding yellow metal. That said, the Federal Reserve's (Fed) hawkish shift holds back traders from placing aggressive bullish bets around the commodity and caps gains.
The upbeat US Nonfarm Payrolls (NFP) report released on Friday reinforced bets for a slower pace of interest rate cuts by the US central bank this year. This, in turn, assists the US Dollar (USD) to stall its profit-taking slide from over a two-year peak touched on Monday and should act as a tailwind for the US bond yields. Furthermore, easing fears about disruptive trade tariffs under Trump 2.0 boosts investors' confidence and contributes to capping the safe-haven Gold price. Traders now look to the US Producer Price Index (PPI) for a fresh impetus later during the North American session.(Cay)
Source: Fxstreet
