Gold price extends its decline below $2,500 on the US Dollar recovery

• Gold price trades in negative territory for the third consecutive day in Tuesday’s early Asian session. 
• The rising US Fed rate cut bets and geopolitical risks might help limit Gold’s losses. 
• Investors await the US August ISM PMI for fresh impetus. 

The Gold price (XAU/USD) loses ground amid the stronger US Dollar (USD) and higher US Treasury bond yields on Tuesday. Nonetheless, the anticipation that the US Federal Reserve (Fed) will cut interest rates in September might underpin the precious metal price as lower interest rates reduce the opportunity cost of holding non-yielding gold. Additionally, the ongoing geopolitical tensions in the Middle East might boost safe-haven assets like Gold. 

Looking ahead, the Institute for Supply Management’s (ISM) Manufacturing Purchasing Managers Index (PMI) will be published on Tuesday. The highlight for this week will be the US Nonfarm Payrolls (NFP) for August, which might determine the pace of the interest rate cut by the Fed and could influence the Gold price in the near term.