Gold prices fell for a second day since opening this week amid end-of-month trends in favor of the USD currency even as US Treasury yields showed a drop.
Nevertheless, the gold metal is expected to post a monthly gain of over 5.40% in September since March 2024.
At 9.30am, the price of gold was at $2,637.78, up a modest 0.12% since it opened in early trading on Tuesday.
Wall Street traded mixed as Federal Reserve (Fed) Chairman Jerome Powell delivered a speech at the 66th NABE Annual Meeting.
Powell has ruled out a possible 50 basis point rate cut in one of the central bank's remaining policy meetings towards the end of the year. He said if the economy develops as expected, two more cuts of 25 basis points will be left in 2024.
Additionally, geopolitical tensions remain high after Israel attacked Hezbollah's headquarters in Lebanon, killing its leader in the attack. Although it guarantees a rise in gold prices, the recent bullion price movement has failed to gain traction.
Meanwhile, China's deteriorating economy has triggered a reaction from the government. The People's Bank of China (PBoC) adopted additional stimulus measures to the economy and triggered flows towards equity markets to surge.
