• Gold price extends the range-bound trading on Tuesday amid doubts over the Fed's rate-cut path.
• Signs of easing inflation keep a September rate cut on the table and lend some support.
• A modest USD strength might cap the upside for the XAU/USD ahead of US Retail Sales. 

Gold price (XAU/USD) struggles to gain any meaningful traction on Tuesday and oscillates in a narrow trading band, around the $2,320 region during the Asian session. Against the backdrop of the Federal Reserve's (Fed) hawkish outlook last week, policymakers continue to argue in favor of only one rate cut in 2024. This remains supportive of elevated US Treasury bond yields and assists the US Dollar (USD) to attract some dip-buyers, which, in turn, caps the upside for the non-yielding yellow metal. 

Gold price, however, remains confined in a familiar range held over the past week or so and below the 50-day Simple Moving Average (SMA), warranting some caution before placing aggressive directional bets. The incoming US macro data pointed to signs of easing inflationary pressures and fueled speculation that the Fed will cut interest rates twice this year, in September and in December. This might keep a lid on the Greenback and help limit any meaningful decline for the XAU/USD.