• Gold price turns lower for the second straight day, though the downside seems limited.
• A positive risk tone is seen undermining the safe-haven metal ahead of the US CPI report.
• Geopolitical risks, bets for bigger Fed rate cuts and subdued USD demand to lend support.

Gold price (XAU/USD) ended in the red on Tuesday as bulls opted to take some profits off the table following the recent gains registered over the past three days and ahead of the key US inflation data. The commodity remains under some selling pressure for the second straight day on Wednesday, though fears about a wider Middle East conflict and dovish Federal Reserve (Fed) expectations should help limit any further losses. 

The US macro data published on Tuesday suggested that inflation continues to moderate and supports prospects for deeper interest rate cuts by the Fed. This keeps the US Dollar (USD) bulls on the defensive near a one-week low and provides a modest lift to the non-yielding yellow metal. That said, a generally positive risk tone might cap gains for the safe-haven XAU/USD and warrant some caution for aggressive bullish traders.