Gold posted gains of over 0.18% during the North American trading session on Monday supported by a weaker US dollar and the market remained calm awaiting the Federal Reserve's (Fed) decision at this week's FOMC meeting.
At 9.20am, the price of gold was at $2,578.53, down slightly by 0.15% since it opened in early Asian trading on Tuesday.
Market sentiment is currently mixed ahead of the Fed decision.
The data shows that the chances of Fed Chairman Jerome Powell and his officials to make a 50 basis point cut are increasing. Markets put expectations as high as 59% for 50 basis points and 41% for 25 basis points.
From a geopolitical point of view, the risk of an escalation of the Middle East conflict remains and an apparent assassination attempt against former US President Donald Trump for a second time also weakens the USD position.
Additionally, the US economic schedule will feature August retail sales data on Tuesday. It is expected to decline from strong results in July and is expected to guide the size of the Fed's cuts.
Next, housing data will be released before Fed decisions and Chairman Jerome Powell's press conference later this week.
