• Gold price bulls turn cautious ahead of the crucial FOMC policy meeting starting this Tuesday.
• The USD languishes near the YTD low amid bets for a 50 bps Fed rate cut and offers support.
• China’s economic woes, the US political uncertainty and geopolitical risks also act as a tailwind.

Gold price (XAU/USD) is seen oscillating in a narrow trading band during the Asian session on Tuesday and consolidating its recent gains to a fresh all-time peak, around the $2,589-2,590 region touched the previous day. Traders now seem reluctant and opt to move to the sidelines ahead of the highly anticipated two-day Federal Open Market Committee (FOMC) meeting starting today. Heading into the key central bank event risk, the prospects for a more aggressive policy easing by the Federal Reserve (Fed) keep the US Dollar (USD) depressed near the 2024 low and continue to act as a tailwind for the non-yielding yellow metal. 

Meanwhile, disappointing Chinese macro data released over the weekend added to concerns about a slowdown in the world's second-largest economy. Apart from this, persistent geopolitical risks, which tend to benefit traditional safe-haven assets, turn out to be another factor lending support to the Gold price. The fundamental backdrop suggests that the path of least resistance for the XAU/USD is to the upside, though investors might prefer to wait for the crucial FOMC policy decision on Wednesday. Moreover, slightly overstretched conditions on the daily chart warrant some caution before placing fresh bullish bets.