• Gold retreats slightly but remains bullish, balancing between risk sentiment and US Treasury yields.
• The decline in NFIB Small Business Optimism highlights cautious economic outlook.
• Federal Reserve's rate cut expectations and cautious stance underpin market sentiment.

Gold prices retreated on Tuesday after refreshing all-time highs reached $2,365 during the overnight session for North American traders. The yellow metal trimmed earlier gains amid a risk-on impulse and falling US Treasury yields, while the Greenback takes a breather after dropping 0.16% on Monday. The XAU/USD trades at $2,346, gaining some 0.35%

The US economic calendar was scarce, except for the poll of the National Federation of Independent Business (NFIB) Small Optimism Index for March fell for the third straight month from 89.4 to 88.5. Aside from this, market participants are awaiting Wednesday’s busy schedule with the release of the US Consumer Price Index (CPI) alongside the Federal Open Market Committee (FOMC) Minutes.

In the meantime, Fed officials remain optimistic that they will cut rates but emphasize the need to be patient.