Gold price attracts some sellers for the second straight day, though the downside seems limited. The optimism over China’s stimulus measures drives some haven flows away from the XAU/USD. Geopolitical risks and bets for a more aggressive policy easing by the Fed could limit losses for the precious metal. Gold price kicks off the new week on a softer note, albeit it remains confined in a multi-day-old range and within striking distance of the all-time peak touched last Thursday.
China's Caixin Manufacturing PMI contracted to 49.3 in September, from 50.4 in the previous month, and the Caixin Services PMI dropped to 50.3 during the reported month from 51.6 in August. Meanwhile, the upbeat mood is seen exerting some downward pressure on the safe-haven precious metal as traders now look to Fed Chair Jerome Powell's speech for some meaningful impetus.