• A combination of factors dragged the Gold price to over a one-week low on Monday.
• Bets that the Fed will cut rates in September lend some support and help limit losses.
• The US Q2 GDP on Thursday and the US PCE data on Friday will be eyed for fresh impetuses.

Gold price (XAU/USD) extended its recent corrective slide from the record high touched last week and fell to a more than one-week trough on Monday. US President Joe Biden's withdrawal from the 2024 Presidential election increased the chances of Donald Trump becoming the next US President, raising hopes of a looser regulatory environment. This, along with unexpected interest rate cuts by the People's Bank of China (PBoC) on Monday, boosted investors' appetite for riskier assets and weighed heavily on the safe-haven precious metal. 

Meanwhile, a second Donald Trump presidency is expected to push up long-term inflation expectations, leading to the overnight rise in the US Treasury bond yields. This acted as a tailwind for the US Dollar (USD) and further contributed to driving flows away from the non-yielding Gold price. That said, growing acceptance that the Federal Reserve (Fed) will start its rate-cutting cycle in September caps gains for the USD and assists the XAU/USD to climb back above the $2,400 mark during the Asian session on Tuesday.