Gold (XAU/USD) prices struggled to capitalize on its modest intraday uptick to $2,650 area and turned flat during the first half of the European session on Tuesday (3/12). Traders now seemed reluctant and preferred to wait for further cues on the Federal Reserve's (Fed) rate cut signal before positioning for the next leg of a directional move. Hence, the focus remains on this week's important US macro releases, including the closely watched Nonfarm Payrolls (NFP) report on Friday. Apart from this, Federal Reserve (Fed) Chairman Jerome Powell's scheduled speech will be looked upon for the outlook on US interest rates. This, in turn, will drive the US Dollar (USD) demand and provide some meaningful impetus to the non-yielding yellow metal.

Meanwhile, concerns over US President-elect Donald Trump's tariff plans, persistent geopolitical uncertainties, and bets that the Fed will cut interest rates again this month might continue to act as a tailwind for the safe-haven Gold prices. Meanwhile, growing market confidence that Trump's policies will reignite inflation and force the Fed to keep interest rates high for a longer period provided a modest lift in the US Treasury bond yields. This continued to lend some support to the US Dollar (USD) and capped gains for the commodity, making it prudent to wait for a strong follow-through buying before placing fresh bullish bets. Traders now eye the US JOLTS Job Openings data for short-term opportunities around XAU/USD.

Source: FXStreet