Gold price holds positive ground ahead of Fed Powell’s testimony

• The Gold price posts modest gains in Tuesday’s early Asian session. 
• Rising rates cut expectations and safe-haven flows might cap the precious metal’s downside.
• Pausing China’s PBoC Gold purchases will likely weigh on XAU/USD in the near term. 

The Gold price (XAU/USD) trades with mild gains on the weaker US Dollar (USD) during the early Asian session on Tuesday. The downside for the precious metal might be limited as traders raise their bets that the US Federal Reserve (Fed) would cut interest rates in September following soft US employment data last week. Additionally, the cautious mood amid the political uncertainties in France and geopolitical tensions in the Middle East might boost the Gold price, a traditional safe-haven asset.

Nonetheless, Gold prices might be dragged lower by the People Bank of China’s (PBoC) decision not to buy Gold for a second straight month in June. Gold traders will monitor Fed Chair Jerome Powell’s semi-annual Congressional testimony, along with the speeches from Fed’s Michael Barr and Michelle Bowman. On Thursday, the US Consumer Price Index (CPI) inflation data will take center stage.