Gold price oscillates in a narrow band on Tuesday and remains close to the all-time peak.
The worsening Middle East crisis weighs on investors’ sentiment and benefits the metal.
Reduced Fed rate cut bets lift the USD to a fresh YTD top and cap gains for the XAU/USD.
Gold price (XAU/USD) struggles to capitalize on the overnight goodish bounce from the $2,325-2,324 area, or a multi-day low, and oscillates in a narrow trading band during the Asian session on Tuesday. The precious metal, meanwhile, remains within striking distance of the all-time peak touched last Friday and continues to draw support from persistent geopolitical tensions stemming from the ongoing conflicts in the Middle East. Apart from this, a modest pullback in the US Treasury bond yields is seen as another factor acting as a tailwind for the yellow metal.
That said, expectations that the Federal Reserve (Fed) will delay cutting interest rates in the wake of still-resilient US economic and sticky inflation should act as a tailwind for the US bond yields. Furthermore, hawkish Fed expectations lift the US Dollar (USD) to its highest level since early November, which, in turn, contributes to capping the upside for the non-yielding Gold price. Traders now look forward to speeches by influential FOMC members, including Fed Chair Jerome Powell, to grab short-term opportunities later during the early North American session.
