Gold eased on Monday after powering to an all-time high above the important $2,500 per ounce level in the last session on strong safe-haven demand and expectations of an imminent US rate cut as investors seek more cues on the quantum of cuts, reports Reuters.
Spot gold was down 0.4 per cent at $2,496.46 per ounce, as of 1011 GMT, just about $13 shy of the record high of $2,509.65 hit on Friday. US gold futures edged 0.1 per cent lower to $2,534.80.
"Despite gold having hit a new record high, we expect prices to move even higher over the coming months, with prices expected to reach $2,600/oz by the end of the year," UBS analyst Giovanni Staunovo said.
"All eyes will be on the speech of Powell at Jackson Hole on Friday and any indication of an imminent rate cut," Staunovo said adding that he expects Powell to open the door for a rate cut, although more for a 25 bps cut than a 50 bps cut.
The market will also scan minutes of the Fed's July policy meeting on Wednesday.
Last week, strong US retail sales print and lower-than-expected unemployment claims, along with mild inflation data, restored confidence in the world's largest economy.
Traders expect US Fed will cut rates next month and are fully pricing in a 25-basis-point rate cut in September, with a 28.5 per cent chance of a 50 bp move, according to CME FedWatch tool.
Bullion has surged over 20 per cent this year, fueled by expectations of US interest rate cuts this year, coupled with rising geopolitical tensions and strong central bank buying.
Demand for gold remains potent as geopolitical tensions, particularly in the Israel-Iran-Hamas conflict, is driving safe-haven demand, Achilleas Georgolopoulos, investment analyst at forex broker XM, wrote in a note.
Elsewhere, spot silver fell 0.2 per cent to $28.95 per ounce, platinum eased 0.3 per cent to $951.75 and palladium shed 0.9 per cent to $942.50.
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