• Gold price catches fresh bids on Tuesday amid Middle East tensions and US election jitters.
• Bets for smaller Fed rate cuts remain supportive of elevated US bond yields and the USD.
• A positive risk tone might further contribute to capping the XAU/USD ahead of US data.

Gold price (XAU/USD) ticks higher during the Asian session on Tuesday and moves closer to the top end of a short-term trading range held over the past week or so. Against the backdrop of safe-haven demand stemming from Middle East tensions and US election jitters, subdued US Dollar (USD) price action is seen as a key factor offering support to the commodity. However, bets for a less aggressive policy easing by the Federal Reserve (Fed) continue to act as a tailwind for the buck and hold back bullish traders from placing fresh bets around the non-yielding yellow metal.

Apart from this, the underlying bullish tone across the global equity markets contributes to capping the upside for the Gold price. Investors also seem reluctant and prefer to move to the sidelines ahead of this week's important macro releases from the US – the Advance Q3 GDP print, the Personal Consumption Expenditures (PCE) Price Index and the Nonfarm Payrolls (NFP) report. The crucial data will play a key role in influencing market expectations about the Fed's rate-cut path, which, in turn, will drive the USD demand and provide a fresh directional impetus to the XAU/USD.