Gold (XAU/USD) is edging higher on Tuesday after finding strong support near the $3,350 region, reversing an earlier pullback. The yellow metal had been drifting lower through the European session, struggling to extend Monday's rebound amid a firmer risk tone and a modest uptick in US Treasury yields.

However, buyers stepped in near the 50-day Simple Moving Average (SMA), lifting prices off intraday lows. The recovery is being supported by continued weakness in the US Dollar, as markets maintain a strong conviction that the Federal Reserve will cut rates in September.

At the time of writing, XAU/USD is ticking lower, hovering around $3,380 during American trading hours, up 0.25% on the day.

Investors are turning their attention to trade-related headlines, particularly developments surrounding US tariffs, which could inject fresh volatility into global markets.

On the data front, it is a relatively quiet day. The S&P Global Services Purchasing Managers Index (PMI) for July came in at 55.7, slightly beating expectations of 55.2, while the Composite PMI rose to 55.1 from 54.6, signaling continued resilience in private sector activity. However, the ISM Services PMI disappointed, easing to 50.1 versus forecasts of 51.5, as new orders and employment components both softened.

The broader market tone remains risk-on, limiting Gold's safe-haven appeal for now.

Source: Fxstreet