Gold extended its losses since last week although it is still hovering around $2,400 which is limited by rising bond yields.
The USD and US Treasuries remained firm as investors digested the news of President Joe Biden withdrawing from the Presidential race and being replaced by Vice President Kamala Harris who will run against Donald Trump this November.
At 9.30am, the price of gold was at $2,403.19, up 0.27% since it was traded at the start of Tuesday's Asian session.
In addition, Wall Street started the week on a positive note after Biden's surprise decision. The benchmark US 10-year note rose two basis points to 4.26% and provided a strong barrier for gold.
According to some economists, Trump's victory will spur a surge in gold because of his manifesto of proposed tax cuts, reduced regulations and a larger national budget deficit.
Donald Trump has the potential to increase inflation and heat up geopolitical conflicts. Meanwhile, Kamala Harris has not yet set her stance on economic policy whether it will give an advantage to gold or not.
For now, the market will be watching the Gross Domestic Product (GDP) figures for the second quarter of 2024 along with the Fed's inflation review via the Personal Consumer Expenditure (PCE) Price Index.
The US Dollar Index (DXY) tracked a neutral performance against the world's major currencies with an unchanged 104.34 and was the driving force behind gold prices to hold below $2,400.
