• Gold price attracts some haven flows near $2,600 after Trump’s tariff threats. 
• Rebounding US bond yields revive USD demand and might cap gains in XAU/USD. 
• Traders now look to FOMC meeting minutes for some meaningful impetuses. 

Gold price (XAU/USD) plunged over 3% on Monday and eroded a major part of last week's strong gains, which marked the best weekly performance since March 2023. Scott Bessent's nomination as the US Treasury Secretary, coupled with reports that Israel was close to reaching a ceasefire with military group Hezbollah in Lebanon, triggered a fresh wave of global risk-on trade. This overshadowed a modest US Dollar (USD) weakness and weighed heavily on the precious metal.

The subsequent fall, however, stalls ahead of the $2,600 mark during the Asian session on Tuesday amid reviving safe-haven demand in the wake of US President-elect Donald Trump's tariff threat. That said, expectations for a less dovish Federal Reserve (Fed), a fresh leg up in the US Treasury bond yields, and renewed US Dollar (USD) buying should cap the non-yielding yellow metal. Traders now look to the release of the FOMC meeting minutes for some meaningful impetuses.