• Gold retreats modestly after failing to sustain gains despite fall in US Treasury yields, weaker US Dollar.
• XAU/USD struggles to capitalize following release of weaker-than-expected S&P Global PMIs, fueling speculation about potential Fed rate cuts.
• Geopolitical tensions ease somewhat, impacting Gold's role as a safe-haven asset in times of turmoil.

Gold price posted modest losses late Tuesday in the North American session after reaching a high of $2,334, sponsored by a weaker-than-expected S&P Global Purchasing Managers Index (PMI) report. Buyers haven’t been able to capitalize on the Greenback weakness, while US Treasury yields dropped from the short end to the belly of the yield curve.

XAU/USD trades at $2,323, down 0.11%. The US 10-year Treasury yield stays firm at 4.402%, while the US real yields, which correlate inversely to Gold prices, drop 0.41% to 2.192%, a tailwind for the golden metal.

Geopolitical risks, despite lingering in traders' minds, calmed following Iran’s attack on Israel and the latter’s retaliation. Data from S&P Global reignited rate cut hopes among investors following last week's hawkish rhetoric implemented by Federal Reserve (Fed) officials led by Chairman Jerome Powell. One of the most dovish members of the FOMC, Chicago Fed Austan Goolsbee, echoed his comments, adding that progress on inflation has “stalled.”