• Gold price struggles to lure buyers despite the Fed’s jumbo interest rate cut on Wednesday.
• A further recovery in the US bond yields underpins the USD and caps the non-yielding metal.
• Concerns about an economic slowdown, along with geopolitical risks, help limit the downside.

Gold price (XAU/USD) witnessed an intraday turnaround after hitting a new record high, around the $2,600 mark and settled in the red for the second straight day on Wednesday. The initial spike in the commodity followed the US Federal Reserve's (Fed) decision to kick-start the policy-easing cycle with an oversized rate cut. The rally, however, ran out of steam after Fed Chair Jerome Powell cooled hopes for a string of 50 basis point rate cuts ahead, which triggered a sharp US Dollar (USD) recovery from a 14-month low and weighed on the non-yielding yellow metal.