Gold price edges higher and moves away from a one-week low touched on Monday.
Bets for a 50-bps Fed rate cut in September and geopolitical risks lend some support.
A turnaround in the global risk sentiment and rebounding US bond yields could cap gains.

Gold price (XAU/USD) touched a one-week low on Monday, although it managed to defend and rebound from the 50-day Simple Moving Average (SMA) support around the $2,365-2,364 region. The incoming softer US macro data fueled worries about a downturn in the world's largest economy and raised expectations for bigger interest rate cuts by the Federal Reserve (Fed). This led to the recent slump in the US Treasury bond yields, which, along with the worsening Middle East crisis, offers some support to the safe-haven precious metal.

That said, a turnaround in the risk sentiment – as depicted by a relief rally in the equity markets – could act as a headwind for the Gold price amid rebounding US bond yields, which offers support to the US Dollar (USD). Nevertheless, the aforementioned fundamental backdrop seems tilted in favor of bullish traders and suggests that the path of least resistance for the XAU/USD is to the upside. Hence, weakness below the $2,400 mark might continue to attract buyers and remain limited in the absence of relevant US economic releases.

GOLD PRICE HOLDS STEADY ABOVE $2,400 MARK AMID MIXED FUNDAMENTAL CUES