Gold price has failed to inspire follow-through buying.

The gold price (XAUUSD) struggles to capitalize on the previous day’s goodish comeback from the $2,315-$2,314 region, or more than a three-week low, and oscillates in a narrow trading zone during Tuesday’s Asian session.

Fed rate cut bets drive the USD to a nearly two-month low, but do little to entice XAUUSD buyers.

Meanwhile, the bias appears to favor bullish traders as prospects of interest rate cuts from the Federal Reserve (Fed) grow later this year. The bets were Reaffirmed by US macro data issued on Monday, which showed a decline in industrial activity and the economy. This, in turn, has dragged the US Dollar (USD) to a near two-month low, which should continue to act as a tailwind for the non-yielding yellow metal.

Aside from that, persisting geopolitical worries reinforce the gold price’s near-term optimistic outlook and provide support for future appreciation. As a result, any significant decline may be viewed as a buying opportunity and will most likely be restricted.

Traders are now looking ahead to this week’s significant US macro data and central bank event concerns.

Traders may also want to remain on the sidelines ahead of other key US macroeconomic announcements this week, such as the Nonfarm Payrolls (NFP) report on Friday. Aside from this, important central bank event risks include the Bank of Canada’s (BoC) decision on Wednesday and the European Central Bank (ECB) meeting on Thursday could give the XAU/USD a boost and assist define the near-term trajectory.

Daily Market Movers: Gold price could continue to draw support from Fed rate decrease wagers.

Signs of lessening inflationary pressures and slower economic growth boosted expectations for a rate decrease by the Federal Reserve this year, which should continue to drive flows to the non-yielding gold price.
The US Bureau of Economic Analysis (BEA) stated on Friday that the Personal Consumption Expenditures (PCE) Price Index remained unchanged at 2.7%, while the core gauge gained 2.8% year on year, meeting expectations.
Data published on Monday showed that the US Institute for Supply Management’s (ISM) Manufacturing PMI decreased to 48.7. in May from 49.2 the previous month, driven by the worst drop in new goods orders in over two years.
This, in turn, spurred another step down in US Treasury bond yields, bringing yields on the rate-sensitive two-year US government bond and the benchmark 10-year note to their lowest levels since May 21.
The US dollar has fallen to its lowest level since April 10, which, combined with geopolitical tensions in the Middle East, may provide additional support to the safe-haven XAU/USD and boost possibilities for further appreciation.
Traders are now looking ahead to the US economic calendar, which will include the release of JOLTS Job Openings and Factory Orders data for short-term chances later in the early North American session this Tuesday.
The attention will turn The US ADP report on private-sector employment is due for Wednesday, followed by the official jobs statistics, widely known as the Nonfarm Payrolls (NFP) report, on Friday.
Aside from that, investors will be watching significant central bank event risks this week, including the Bank of Canada’s (BoC) decision on Wednesday and the highly anticipated European Central Bank (ECB) meeting on Thursday.