- Gold price regains positive traction amid a modest pullback in the US bond yields.
- Hawkish Fed expectations favor the USD bulls and should cap the precious metal.
- The risk-on impulse might further contribute to keeping a lid on the XAU/USD pair.
Gold price (XAU/USD) attracts some dip-buyers on Tuesday, though it lacks follow-through and remains below a one-month top touched the previous day heading into the European session. Reports that US President-elect Donald Trump’s top economic advisers are mulling a slow ramp-up in tariffs to prevent a sudden spike in inflation trigger a modest pullback in the US Treasury bond yields and benefit the non-yielding yellow metal. That said, the Federal Reserve’s (Fed) hawkish shift holds back traders from placing aggressive bullish bets around the commodity and caps gains.
The upbeat US Nonfarm Payrolls (NFP) report released on Friday reinforced bets for a slower…
