Gold price edges lower on easing Middle East tensions, focus remains on FOMC meeting

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• Gold price trades with a mild negative bias for the second successive day on Tuesday.
• Hawkish Fed expectations, elevated US bond yields and some USD buying exert pressure.
• Receding safe-haven demand also undermines the XAU/USD ahead of the FOMC meeting.

Gold price (XAU/USD) remains depressed for the second successive day on Tuesday and trades below the $2,000 psychological mark through the Asian session. Expectations that the Federal Reserve (Fed) will keep the door open for one additional rate hike this year to bring inflation back to its 2% target remain supportive of elevated US Treasury bond yields. This, in turn, helps revive the US Dollar (USD) demand and turns out to be a key factor weighing on the non-yielding yellow metal.