Gold held steady at a peak around $3,750 heading into the week, as expectations of the next US interest rate cut by the Federal Reserve (Fed) and geopolitical risks increased.
At 9.40 am, gold was at $3,741.73, down 0.20% since it opened in early trading on Friday in the Asian session.
The US central bank decided to cut its benchmark interest rate by 25 basis points at its September meeting, bringing the Federal Funds Rate to a target range of 4.00% to 4.25%.
Investors are now expecting at least two rate cuts in the remaining two Fed meetings this year, with lower interest rates likely to reduce the cost of holding gold and support its rise.
However, speeches from Fed policymakers including Jerome Powell have signaled a more neutral tone, relying on upcoming economic data.
Meanwhile, Fed Governor Stephen Miran opted for a more aggressive 50 basis point cut, arguing that by setting aside the impact of tariffs, it is considered temporary.
The cautious tone of Fed officials may limit the rise in the yellow metal in the near term.
For now, market players will be closely monitoring the development of US PCE inflation data for August tonight.
