• Gold price stalls its recent upward trajectory to a fresh all-time peak touched on Monday.
• Reduced June Fed rate cut bets continue to underpin the USD and act as a headwind.
• The downside remains cushioned amid the risk-off mood and persistent geopolitical risks.

Gold price (XAU/USD) oscillates in a range during the Asian session on Tuesday and consolidates its gains registered over the past five days to the all-time peak, around the $2,265-2,266 area touched the previous day. The upbeat US manufacturing data released on Monday raised doubts if the Federal Reserve (Fed) will cut interest rates three times this year. This remains supportive of elevated US Treasury bond yields, which, in turn, pushes the US Dollar (USD) to its highest level since February 14 and turns out to be a key factor undermining the non-yielding yellow metal.

The markets, however, are still pricing in a greater chance that the Fed will begin its rate-cutting cycle in June. This, along with the risk-off impulse and geopolitical risks stemming from conflicts in the Middle East, should help limit losses for the safe-haven Gold price. This makes it prudent to wait for strong follow-through selling before confirming that the XAU/USD has topped out in the near term and positioning for any meaningful corrective decline. Traders now look to the US macro data and speeches by a slew of influential FOMC members for a fresh impetus.