- Gold price edges higher for the second straight day, albeit lacks follow-through buying.
- Geopolitical tensions, along with sliding US bond yields, lend support ahead of the FOMC.
- The uncertainty over the timing of the first Fed rate cut might cap any meaningful upside.
Gold price (XAU/USD) gains some positive traction for the second straight day on Tuesday and steadily climbs back closer to the $2,040-2,042 supply zone during the first half of the European session. Fears that escalating tensions in the Middle East could trigger a wider war in the region keep a lid on the recent optimism in the markets. Apart from this, a further decline in the US Treasury bond yields turns out to be a key factor lending support to the non-yielding yellow metal.
That said, the emergence of some US Dollar (USD) buying…
