Gold price bounces off daily low; bulls seem non committed amid stronger USD and risk-on mood

• Gold price reverses an intraday dip on Tuesday, albeit the upside potential seems limited. 
• Geopolitical risks benefit the safe-haven bullion, though a stronger USD might cap gains. 
• Signs of a slowdown in China – the biggest bullion consumer – warrant caution for bulls. 

Gold price (XAU/USD) finds some support near the $2,638 region during the early European session on Tuesday and for now, seems to have stalled its modest pullback from over a one-week high touched the previous day. Persistent geopolitical risks and fears of a broader conflict in the Middle East turn out to be a key factor that offers some support to the safe-haven precious metal. 

Any meaningful appreciating move for the Gold price, however, seems elusive amid sustained US Dollar (USD) buying, which remains well supported by expectations for a less aggressive policy easing by the Federal Reserve (Fed). Furthermore, the disappointment over China's fiscal stimulus failed to evoke investors' confidence and might contribute to capping gains for the XAU/USD. 

Daily Digest Market Movers: Gold price attracts haven flows amid geopolitical risks

• The US Dollar shot to its highest level since August 8 on Monday amid growing acceptance of a less aggressive policy easing by the Federal Reserve and bets for a regular 25 basis points interest rate cut in November. 
• Minneapolis Fed President Neel Kashkari said on Monday that the monetary policy is still restrictive and suggested that further modest interest rate cuts could be appropriate as the job market remains strong.
• Fed Governor Christopher Waller noted that the economy is on solid footing, may not be slowing as much as desired, and that the central bank should proceed with more caution on rate cuts than at the September meeting.
• The lack of numerical details for China's fiscal stimulus, along with signs of economic softness in the biggest bullion consumer, prompted some intraday selling around the Gold price on the first day of a new week. 
• Israel vowed a forceful response to Hezbollah’s drone attack on its army base on Sunday, which killed four soldiers and severely wounded seven others, raising the risk of a further escalation of geopolitical tensions. 
• This comes amid growing concern that Israel may mount an offensive against Iranian assets and a broader regional conflict in the Middle East, which offers some support to the safe-haven precious metal. 
• Traders now look to the release of the Empire State Manufacturing Index, which, along with Fedspeak, should produce short-term trading opportunities around the XAU/USD later during the North American session. 

Technical Outlook: Gold price might continue to face resistance near $2,666-2,667 area

From a technical perspective, the overnight swing high, around the $2,666-2,667 region, now seems to act as an immediate hurdle. A sustained strength beyond has the potential to lift the Gold price back towards the all-time peak, around the $2,685-2,686 region touched in September. This is closely followed by the $2,700 round-figure mark, which if cleared decisively will set the stage for an extension of a well-established multi-month-old uptrend.

On the flip side, weakness below the $2,632-2,630 immediate support is likely to attract some buyers and remain limited near the $2,600 round-figure mark. Failure to defend the said handle will be seen as a fresh trigger for bearish traders and make the Gold price vulnerable to accelerate the fall towards the next relevant support near the $2,560 zone. The corrective slide could extend further towards the $2,535-2,530 region en route to the $2,500 psychological mark.