• Gold price remains depressed amid a modest USD strength, though the downside seems limited.
• September Fed rate cut bets might cap further USD gains and lend support to the XAU/USD.
• Traders also seem reluctant ahead of the key central bank event risks and important macro data.

Gold price (XAU/USD) struggled to find acceptance above the $2,400 mark and attracted some intraday sellers on Monday amid a strong pickup in US Dollar (USD) demand. Apart from this, the risk-on impulse was seen as another factor exerting some downward pressure on the safe-haven precious metal. That said, geopolitical risks stemming from the ongoing conflicts in the Middle East offered some support to the commodity.

Meanwhile, growing acceptance that the Federal Reserve (Fed) will start cutting interest rates in September, bolstered by a tame US inflation report on Friday, capped gains for the USD and helped limit losses for the Gold price. Furthermore, traders opt to wait for the outcome of the highly anticipated two-day Federal Open Market Committee (FOMC) meeting on Wednesday before committing to any firm near-term trajectory for the XAU/USD.