The greenback’s rebound could be linked to the market’s sour sentiment amid the fresh US-China tussles over Taiwan. Also likely to have stopped the US dollar bears could be the latest hawkish comments from Minneapolis Fed President Neil Kashkari and a firmer print of the Fed’s preferred inflation gauge. Additionally, the cautious mood ahead of Friday’s key US Nonfarm Payrolls (NFP) and downbeat prints of China’s PMIs for July are also likely to have weighed on the gold prices. On the other hand, the US “technical recession” and previous comments from Fed Chair Jerome Powell suggest that the US central bank runs out of steam for aggressive rate hikes. Additionally, the month-end consolidation of the US dollar could also be held responsible for the gold price recovery. Amid these plays, the US Treasury yields recovered to 2.67%, up three basis points (bps) but S&P 500 Futures print mild losses around 4,110 at the latest. Given the market’s mixed concerns and the XAU/USD pullback, risk catalysts could entertain traders ahead of the US ISM Manufacturing PMI for July, expected at 52 versus 53 prior. That said, the metal traders are likely to remain cautious ahead of Friday’s US Nonfarm Payrolls (NFP) for July considering the calls for neutral rates and US recession chatters.