• Gold trades firmly in its range as traders await more news and data before taking positions. 
• The Fed’s preferred gauge of inflation is out on Friday and could move the Gold price. 
• XAU/USD’s break above key resistance fails to follow through, throwing the technical picture into confusion.  

Gold (XAU/USD) trades in familiar territory in the $2,320s on Tuesday, amid a subdued market mood after a mixed session for Asian stocks and investor loss of appetite for tech stocks on Monday. 

Gold yo-yos as investors await fresh cues

Gold trades about a third of a percent lower on Tuesday, still stuck in a range, amid a cautious market mood as investors await fresh macroeconomic and political news. 

Of key interest will be the US Personal Consumption Expenditures (PCE) Price Index for May out on Friday, the Federal Reserve’s (Fed) preferred inflation gauge. 

Speeches from Fed members' Lisa Cook and Michelle Bowman on Tuesday could provide further clues on the trajectory of interest rates in the US, a key driver of Gold since it dictates the opportunity cost of holding the non-coupon bearing asset.

On Monday, San Francisco Fed President Mary Daly said she does not believe the Fed should cut rates before it is confident that inflation is headed towards 2%. At the same time Daly cautioned about not focusing on inflation to the detriment of the labor market. If unemployment continued to rise the Fed could cut rates to support demand and the labor market, according to Reuters.