Gold price stays in a limited range as traders prefer to stay on the Sidelines.

The gold price (XAUUSD) continues to struggle to find any Traction. Extending its sideways consolidative price move throughout the Asian session on Tuesday.

Reduced Fed rate cut bets boost USD demand while acting as a drag for the metal.

The growing assumption that the Federal Reserve (Fed) would hold interest rates higher for longer. Despite signs of still sticky inflation, helps the US Dollar (USD) attract some dip buying. Aside from that, lowering tensions in the Middle East serves as A headwind for safe haven precious metals. The downside, however, remains muted. As traders prefer to wait for clues on the Fed’s rate cutting path before making new directional bets.

As a result, the focus remains on the critical two day FOMC monetary policy meeting that begins today. And the release of the much watched US monthly employment data, known as the Nonfarm Payrolls (NFP) report, on Friday. This will have a significant impact on USD demand in the immediate future, as well as provide some traction to the non yielding Gold price. Heading into the significant central bank/US data concerns, Tuesday’s US economic docket. Which includes the Chicago PMI and the Conference Board’s Consumer Confidence Index, may provide short-term trading possibilities.

Daily Market Movers: Gold Price is Undermined by aggressive Fed views and slight USD strength.

The US Personal Consumption Expenditures (PCE) Price Index, released on Friday, pointed to still-sticky inflation and reiterated wagers that the Federal Reserve will begin its rate-cutting cycle in September.
Hawkish Fed predictions function as a tailwind for the US dollar, which, coupled with a generally favorable risk tone, contribute to limiting the upside for the non-yielding gold price.
The global risk sentiment remained strong, owing to declining fears of additional escalation in the conflict between Iran and Israel, as well as recent optimism about Israel-Hamas peace talks in Cairo.
Traders appear to have withdrawn to the sidelines and desist from positioning for a A clear near-term outlook ahead of this week’s significant central bank event risk and important US economic reports.
The Fed is slated to announce its policy decision at the end of a two-day meeting on Wednesday, followed by the release of the much watched US jobs data, known as the Nonfarm Payrolls report, on Friday.

Investors are now waiting for the FOMC decision and US macro data before making directional bets.

Investors will be looking for clues about the Fed’s future policy decisions and rate-cut path, which will affect USD price dynamics and help determine the XAUUSD’s near-term trend.
In the meanwhile, Tuesday’s US economic calendar, which includes the Chicago PMI and the Conference Board’s Consumer Confidence Index, could provide some momentum later in the North American session.