GOLD PRICE FORECAST: XAU/USD BULLS RETAIN CONTROL NEAR NINE-MONTH TOP, JUST BELOW $1,950

Gold price touches a nine-month top on Tuesday amid renewed US Dollar selling.

Bets for smaller rate hikes by Federal Reserve continue to weigh on the greenback.

Recession fears further benefit the safe-haven XAU/USD and favour bullish traders.

Gold price builds on the previous day's modest uptick and gains some follow-through traction for the second successive day on Tuesday. The momentum pushes the XAU/USD to its highest level since April 22, around the $1,942-$1,943 region during the early European session, though lacks follow-through.

Weaker US Dollar benefits Gold price

The US Dollar (USD) meets with a fresh supply and hits a new nine-month low amid firming expectations for a less aggressive policy tightening by the Federal Reserve (Fed). Investors now seem convinced that the Fed will soften its hawkish stance amid signs of easing inflationary pressures in the United States (US). In fact, the markets have been pricing in a smaller 25 bps rate hike at the upcoming Federal Open Market Committee (FOMC) policy meeting next week. This leads to a modest downtick in the US Treasury bond yields and continues to weigh on the greenback, which, in turn, is seen benefitting the US Dollar-denominated Gold price.