Gold price cautios despite weaker US Dollar and falling US yields

• Gold retreats modestly after failing to sustain gains despite fall in US Treasury yields, weaker US Dollar.
• XAU/USD struggles to capitalize following release of weaker-than-expected S&P Global PMIs, fueling speculation about potential Fed rate cuts.
• Geopolitical tensions ease somewhat, impacting Gold’s role as a safe-haven asset in times of turmoil.

Gold price posted modest losses late Tuesday in the North American session after reaching a high of $2,334, sponsored by a weaker-than-expected S&P Global Purchasing Managers Index (PMI) report. Buyers haven’t been able to capitalize on the Greenback weakness, while US Treasury yields dropped from the short end to the belly of the yield curve.

XAU/USD trades at $2,323, down 0.11%. The US 10-year Treasury yield stays firm at 4.402%, while the US real yields, which correlate inversely to Gold prices, drop 0.41% to 2.192%, a tailwind for the golden metal.