Gold price slides to a one-week low amid some repositioning trades ahead of the US election.
Fed rate cut bets, falling US bond yields and subdued USD demand could lend some support.
Middle East tensions might further contribute to limiting losses for the safe-haven XAU/USD.
Gold price (XAU/USD) attracts fresh sellers during the Asian session on Tuesday and drops to over a one-week low, around the $2,725-2,724 region, though the downside seems cushioned. The uncertainty surrounding the closely contested US presidential election, along with the risk of a further escalation of geopolitical tensions in the Middle East, might continue to offer support to the safe-haven precious metal.
Meanwhile, the unwinding of the "Trump trade" and bets the Federal Reserve (Fed) will lower interest rates further amid signs of a cooling US labor market lead to a further decline in the US Treasury bond yields. This fails to assist the US Dollar (USD) to build on the overnight bounce from a two-week low and should further contribute to limiting any meaningful depreciating move for the non-yielding Gold price.
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