Gold price remains confined in a narrow range as traders prefer to wait on the sidelines.
Reduced Fed rate cut bets revive the USD demand and act as a headwind for the metal.
Investors now await the FOMC decision and US macro data before placing directional bets.
Gold price (XAU/USD) continues with its struggle to gain any meaningful traction and extends its sideways consolidative price move during the Asian session on Tuesday. Growing acceptance that the Federal Reserve (Fed) will keep interest rates higher for longer amid signs of still sticky inflation assists the US Dollar (USD) in attracting some dip-buying. Apart from this, easing tensions in the Middle East acts as a headwind for the safe-haven precious metal. The downside, however, remains cushioned as traders prefer to wait for cues about the Fed's rate-cut path before placing fresh directional bets.
Hence, the focus remains glued to the crucial two-day FOMC monetary policy meeting starting today and the release of the closely-watched US monthly employment details, popularly known as the Nonfarm Payrolls (NFP) report on Friday. This will play a key role in influencing the USD demand in the near term and provide some meaningful impetus to the non-yielding Gold price. Heading into the key central bank/US data risks, Tuesday's US economic docket – featuring the Chicago PMI and the Conference Board's Consumer Confidence Index – might produce short-term trading opportunities.
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