Gold Price Forecast: XAU/USD attracts some sellers to below $3,350 amid tariff uncertainty

• Gold price edges lower to near $3,320 in Monday's early Asian session. 
• Strong US June employment data weighs on the Gold as Fed rate cut odds decline. 
• Middle East geopolitical risks and renewed trade tensions might cap the downside for the Gold price. 

The Gold price (XAU/USD) attracts some sellers to around $3,320 during the early Asian session on Monday. The precious metal edges lower as the US June Nonfarm Payrolls (NFP) report altered the US Federal Reserve (Fed) policy expectations. Traders brace for the Federal Open Market Committee (FOMC) Minutes later on Wednesday for fresh impetus. 

The US NFP came in stronger than expected, rising by 147,000 jobs in June from 144,000 in May (revised from 139,000). Additionally, the Unemployment Rate held steady at 4.1% in June. These reports indicated continued labor market resilience, reducing the possibility of the Fed's near-term monetary accommodation. This, in turn, underpins the US Dollar (USD) and exerts some selling pressure on the non-yielding assets like Gold.

On the other hand, the potential downside of yellow metal might be limited amid the renewed geopolitical tensions in the Middle East. Israel stated late Sunday that the country's military had attacked Houthi targets at three ports and a power plant in Yemen. Defence Minister Israel Katz confirmed the attack, saying they were carried out due to repeated attacks by the Iranian-backed rebel group on Israel. Any sign of escalation could boost the safe-haven flows, benefiting the gold price. 

Gold traders will closely monitor the developments surrounding tariff policies. CBBC reported on Sunday that US Treasury Secretary Scott Bessent said that US President Donald Trump will send letters to some trading partners saying tariffs will return to April 2 levels on August 1 if there is no progress on the trade agreement. Renewed trade tensions might lift the Gold price in the near term.