Gold prices (XAU/USD) experienced an upward trend on Tuesday, marking a reversal from a two-day decline and reaching the $2,015 area, surpassing the one-week low observed the previous day. The surge is attributed to a subtle decline in global risk sentiment, bolstering the appeal of the safe-haven precious metal.
Additionally, a modest decrease in US Treasury bond yields is putting pressure on the US Dollar (USD), providing supplementary support for the commodity.
Meanwhile, market participants have completely discounted the likelihood of early interest rate cuts by the Federal Reserve (Fed) following robust incoming US macroeconomic data, indicating the resilience of the economy. In tandem with this, recent hawkish comments from various Fed officials suggest a prolonged period of higher interest rates. This anticipated trajectory is expected to propel US bond yields, favoring the USD bulls and potentially imposing a limit on the non-yielding Gold price.
