Gold price ticks lower in a familiar range amid some follow-through USD buying

• Gold price edges lower as USD benefits from reduced expectations of a 50 bps Fed rate cut.
• The downside remains limited as traders look to US inflation numbers for a fresh impetus. 
• The technical setup supports prospects for a breakout through a short-term trading range. 

Gold price (XAU/USD) struggles to capitalize on the previous day’s move up from the $2,485 region and ticks lower during the Asian session on Tuesday amid some follow-through US Dollar (USD) strength. Investors trimmed their bets for a larger interest rate cut by the Federal Reserve (Fed) in September following the release of mixed US monthly jobs report on Friday. This, in turn, lifts the USD Index (DXY), which tracks the Greenback against a basket of currencies, back closer to the monthly peak touched last week and acts as a headwind for the non-yielding yellow metal.

Apart from this, a generally positive tone around the equity markets is seen as another factor undermining demand for the safe-haven Gold price. The XAU/USD, however, remains confined in a multi-week-old trading range as investors await more cues about the size of the Fed rate cut later this month. Hence, the market focus will remain glued to the release of the latest US consumer inflation figures on Wednesday. In the meantime, the prospects for an imminent start of the Fed’s rate-cutting cycle might hold back traders from placing aggressive bearish bets around the metal.