• Gold price attracts some buyers amid the softer USD on Monday. 
• The growing expectations that the Fed will start cutting interest rates later in the year lifted the yellow metal. 
• The easing Middle East tensions and risk-on mood might cap the gold’s upside. 

Gold price (XAU/USD) snaps the two-day losing streak during the Asian session on Monday. The weaker-than-expected US employment reports have boosted the odds of a September rate cut from the US Federal Reserve (Fed). This, in turn, has dragged the US Dollar (USD) lower and lifted the USD-denominated gold. It’s worth noting that a lower interest rate can decrease the opportunity cost of investing in gold, leading to higher demand and price. 

On the other hand, the easing fear of geopolitical tensions in the Middle East, particularly the Iran-Israel conflict and the risk-on environment might undermine demand for safe-haven assets and cap the yellow metal’s upside. Gold traders will keep an eye on Fedspeak this week. Fed’s Thomas Barkin and John Williams are set to speak on Monday. The dovish message from Fed officials might further boost the XAU/USD.