Gold price (XAU/USD) attracts some buyers for the second straight day on Tuesday and builds on its steady ascent through the first half of the European session. Growing acceptance that the Federal Reserve (Fed) will begin its rate-cutting cycle in June keeps the US Treasury bond yields depressed and drags the US Dollar (USD) away from a multi-week high touched last Friday. This, along with persistent geopolitical risks stemming from the protracted Russia-Ukraine war and conflicts in the Middle East, turn out to be key factors benefitting the safe-haven precious metal.
Traders, however, might refrain from placing aggressive directional bets and prefer to wait for more cues about the Fed's rate-cut path, which, in turn, will drive the non-yielding Gold price in the near term. Hence, the market focus will remain glued to the release of the US Personal Consumption and Expenditure (PCE) Price Index data – the Fed's preferred inflation gauge on Friday. In the meantime, Tuesday's US economic docket – featuring Durable Goods Orders, the Conference Board's Consumer Confidence Index and the Richmond Manufacturing Index – might provide some impetus.
