Gold Price Forecast: XAU/USD flat lines above $2,600 ahead of holiday trading week

• Gold price holds steady near $2,610 in Tuesday's early Asian session. 
• The stronger Greenback and high bond yields could drag the Gold price lower. 
• Safe-haven flow and the world's central banks demand might cap the downside for yellow metal. 

Gold price (XAU/USD) trades flat around $2,610 during the early Asian session on Tuesday. Markets face a relatively quiet trading session ahead of the holiday trading week. The US Richmond Fed Manufacturing Index for December is due later on Tuesday. 

The firmer US Dollar (USD) could weigh on the yellow metal as it makes commodities priced in the currency more expensive for most buyers. Meanwhile, the US Dollar Index (DXY), a measure of the USD's value relative to its most significant trading partners' currencies, edges higher to the 108.00 handle amid the cautious mood. 

"The market continues to digest the results of the Federal Open Market Committee (FOMC) meeting last week. A shallower rate path for 2025 is now getting factored in, probably a pause in January, maybe March as well," noted Peter Grant, vice president and senior metals strategist at Zaner Metals.

On the other hand, safe-haven demand and buying by the world's central banks could underpin the precious metal. According to the World Gold Council (WGC), central bank demand increased significantly, highlighting the metal's continued position as a safe-haven asset. Central banks have been net purchasers of gold for over 15 years.