Gold price attracts some sellers below $2,500 on firmer US Dollar

• Gold price loses traction in Monday’s Asian session.
• The stronger USD undermines the yellow metal, while the dovish Fed might cap its downside. 
• Traders will focus on the US PMI data ahead of the employment report on Friday. 

The Gold price (XAU/USD) extends its decline below the $2,500 psychological level on Monday. The firmer Greenback after the US July’s Personal Consumption Expenditures (PCE) Index has weighed on the precious metal. Furthermore, the concerns about the sluggish economy in China, the world’s top buyer of Gold, contribute to the precious metal’s downside. 

Nonetheless, the rising expectation of an interest rate cut by the US Federal Reserve (Fed) in its September meeting might help limit Gold’s losses as lower interest rates reduce the opportunity cost of holding non-yielding gold. Looking ahead, the US ISM Manufacturing PMI for August is due on Tuesday, while the Services PMI will be released on Thursday. The attention will shift to the US employment data on Friday, including the Nonfarm Payrolls (NFP), Unemployment Rate and Average Hourly Earnings for August.