Gold price (XAU/USD) struggles to capitalize on the previous day's positive move and trades with a mild negative bias heading into the European session on Tuesday. A slew of influential Federal Reserve (Fed) officials recently tried to push back against market bets for early interest rate cuts in 2024. This, along with the post-Bank of Japan (BoJ) selling around the Japanese Yen (JPY), lends some support to the US Dollar (USD) and exerts some pressure on the non-yielding yellow metal.
Apart from this, the prevailing risk-on sentiment across the global equity markets is seen as another factor undermining the safe-haven Gold price. That said, geopolitics remains the biggest risk for the markets. Furthermore, worries about a deeper global economic downturn, particularly in China and the Eurozone, might continue to act as a tailwind for the XAU/USD. Traders might also refrain from placing aggressive bets ahead of a key US inflation reading, due on Friday.
Apart from this, the prevailing risk-on sentiment across the global equity markets is seen as another factor undermining the safe-haven Gold price. That said, geopolitics remains the biggest risk for the markets. Furthermore, worries about a deeper global economic downturn, particularly in China and the Eurozone, might continue to act as a tailwind for the XAU/USD. Traders might also refrain from placing aggressive bets ahead of a key US inflation reading, due on Friday.