
WASHINGTON (dpa-AFX) - Gold hovered below last week's record high on Monday but headed for a fourth consecutive quarterly gain due to escalating geopolitical tensions and rate cut bets.
Spot gold dipped 0.3 percent to $2,649.60 per ounce while U.S. gold futures were up 0.1 percent at $2,670.95.
Bullion has risen more than 14 percent so far this quarter, marking its best quarterly performance since January 2016.
Geopolitical tensions remained on investors' radar after Israel intensified its military operations against Hezbollah in Lebanon on Sunday, targeting numerous sites following the killing of the group's leader, Sayyed Hassan Nasrallah.
It is feared that Israel's increased attacks against Hezbollah in Lebanon and Houthi in Yemen may bring the region one step closer to a much wider conflict involving Iran and the United States.
In economic news, Fed Chair Jerome Powell's speech later in the day at the National Association for Business Economics event along with U.S. reports on manufacturing and service sector activity as well as the jobs report for September, due this week could impact investors' views on the Federal Reserve's next move at its monetary policy meeting on November 6-7.
The Federal Reserve reduced its benchmark interest rate by 50 basis points on September 12, marking the first decrease since 2020.
Traders are now positioning themselves for the U.S. central bank to cut rates by another 75-100 bps this year.
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