Gold fell somewhat on Tuesday, pulled down by a number of factors.

The gold price (XAUUSD) is unable to capitalize on the previous day’s positive advance. And is trading with a slight negative bias heading into Tuesday’s European session. A host of powerful Federal Reserve (Fed) executives have attempted to counter market expectations for early interest rate cuts in 2024. This, together with post-BoJ selling around the Japanese Yen (JPY), contributes The US Dollar (USD) gains some support. But the non-yielding yellow metal suffers some pressure.

Aside from that, the current risk-on mentality in global financial markets is considered. As a factor hurting the safe-haven Gold price. Nonetheless, geopolitics remains the market’s greatest concern. Concerns of a further global economic slowdown. Notably in China and the Eurozone, may also continue to act as a tailwind for the XAUUSD. Traders may also avoid from taking aggressive bets before of Friday’s critical US inflation estimate.

The US Core Personal Consumption Expenditure (PCE) Price Index will be scrutinized for new signals regarding the Fed’s future policy actions, which will fuel USD demand and provide a new directional indicator. Gold’s price has gained traction. Meanwhile, traders will look to the US housing industry statistics – Building Permits and Housing Starts – on Tuesday. Aside from that, Richmond Fed President Thomas Barkin’s scheduled speech may have an impact on the XAUUSD.

Daily Digest Market Movers: Gold trades with a slight downward bias, but there is no follow-through.

Chicago for Monday, Federal Reserve President Austan Goolsbee and Cleveland Fed President Loretta Mester resisted market bets for interest rate decreases.

Goolsbee expressed confusion at the market reaction to last week’s FOMC meeting and stated that the central bank is not committing to dropping rates soon and fast.

Separately, Cleveland Fed President Loretta Mester observed that financial markets have gotten ahead of the Fed. When can the central bank expect interest rates to be decreased next year?

This follows New York Fed President John Williams’ comments on Friday that it was premature to bet on rate reduction, limiting the upside for the gold price.

The markets, on the other hand, appear convinced that the Fed will begin to ease by the first half of 2024, which continues to underpin the US Dollar and boost the metal.

Geopolitical threats should operate as a tailwind ahead of Friday’s release of the US PCE Price Index.

Concerns about geopolitical threats related to the Middle East war could help to minimize any major decline in the safe-haven precious metal.

Yemen’s Iran-aligned Houthi insurgents staged a series of drone and missile attacks on ships in the southern Red Sea, claiming responsibility for the attacks. Israel’s offensive on the Gaza Strip.

To combat the Houthi danger in the Red Sea. US Defense Secretary Lloyd Austin announced the formation of a global coalition. And the commencement of Operation Prosperity Guardian.

Investors will now be looking for hints regarding the Fed’s future policy decisions. In the US Core Personal Consumption Expenditure (PCE) Price Index on Friday.