Gold price (XAU/USD) maintains its offered tone heading into the European session and currently trades well below the $3,300 mark, or over a one-week low touched earlier this Wednesday.

Expectations that steep US tariffs would underpin inflation in the coming months and force the Federal Reserve to keep interest rates steady for an extended period remain supportive of elevated US Treasury bond yields.

This, in turn, assists the US Dollar (USD) to stand firm near a two-week low and is seen as a key factor undermining the non-yielding yellow metal.

Meanwhile, the global risk sentiment remains fragile on the back of growing concerns over the potential economic fallout from US President Donald Trump's trade tariffs, though it does little to provide any respite to the safe-haven Gold price.

The XAU/USD bears, however, might refrain from placing aggressive bets and opt to wait for more cues about the Fed's rate-cut path. Hence, the focus remains glued to FOMC meeting minutes, which, in turn, will play a key role in determining the next leg of directional move for the Greenback and the precious metal.

Source: FXStreet