• Gold price lacks a firm direction and is influenced by a combination of diverging forces.
• Bets for a less dovish Fed underpin the USD and act as a headwind for the XAU/USD.
• Trade war fears, geopolitical risks and depressed US bond yields lend some support.

Gold price (XAU/USD) struggles to capitalize on the previous day's rebound from the $2,620 region and oscillates in a narrow band during the Asian session on Tuesday. A firmer US Dollar (USD), bolstered by expectations for a less dovish Federal Reserve (Fed), is seen as a key factor undermining demand for the commodity. That said, concerns about US President-elect Donald Trump's tariff plans, persistent geopolitical uncertainty and suppressed US Treasury bond yields act as a tailwind for the precious metal.

Furthermore, traders seem reluctant and opt to wait for more cues about the Fed's rate-cut path before placing fresh directional bets around the non-yielding Gold price. Hence, the focus will remain on this week's important US macro data, including the closely watched US monthly employment details or the Nonfarm Payrolls (NFP) report on Friday. Apart from this, Fed Chair Jerome Powell's speech will play a key role in influencing the near-term USD price dynamics and provide a fresh impetus to the XAU/USD.

Gold price struggles to lure buyers amid a mixed fundamental backdrop

• The US Dollar looks to build on the overnight recovery from a multi-month low amid bets that the Federal Reserve will keep interest rates high for a longer period and undermine the Gold price.
• Investors remain concerned that US President-elect Donald Trump's tariff plans could trigger a second wave of global trade wars, which, in turn, acts as a tailwind for the safe-haven precious metal.
• The Institute of Supply Management's (ISM) Manufacturing Purchasing Managers Index (PMI) rose to 48.4 in November amid hopes of business-friendly policies from the incoming Trump administration.
• The CME Group's FedWatch Tool indicates a nearly 75% chance that the US central bank will lower borrowing costs by 25 basis points at its upcoming monetary policy meeting later this month.
• The yield on the benchmark 10-year US government bond languishes near its lowest levels since late October and further contributes to limiting the downside for the non-yielding XAU/USD. 
• Russia fired at least 60 North Korean missiles against Ukraine. North Korean leader Kim Jong Un vowed that his country will invariably support Moscow until Russia achieves a great victory in Ukraine.
• Investors keenly await this week's important US macro releases and Fed Chair Jerome Powell's speech, which might influence the outlook for interest rates in the US and drive the commodity. 
• Tuesday's US economic docket features the release of Job Openings and Labor Turnover Survey (JOLTS) Job Openings data, though the focus remains on the Nonfarm Payrolls (NFP) on Friday.