• Gold price hovers above $2,400 and sees more upside on multiple tailwinds.
• The Fed is expected to cut interest rates by more than 100 bps this year.
• Investors worry that the US could face a recession.

Gold price (XAU/USD) holds key ground at $2,400 as the US Dollar (USD) and bond yields give up some of their gains in Tuesday’s European session. The precious metal gains while investors look for fresh cues, which could clarify whether the United States (US) enters a recession. Also, market participants await signals about how much the Federal Reserve (Fed) will reduce interest rates this year.

The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, climbs to near 103.00 after recovering from more than a six-month low near 102.15. The 10-year US Treasury yields surrender some of its gains but hold above 3.86%. Historically, higher yields on interest-bearing assets reduce the opportunity cost of non-yielding assets, such as Gold.