Gold moved to recover above $2,650 after it traded lower at the end of last week. The upward trend was supported by geopolitical risks and strong expectations for a rate cut by the Federal Reserve (Fed) at its November meeting.
At 9.15am, the price of gold was at $2,660.63, up 0.08% since it opened in early trading on Monday.
According to CNN media reports, Israel continued to launch airstrikes on Hezbollah targets in Lebanon, killing more than 100 people and injuring more than 350 others on Sunday.
Israel's attack on Hezbollah leader Hassan Nasrallah has fueled tensions in the Middle East and increased conflict along the border with Lebanon that may increase safe-haven flows that benefit gold prices.
Additionally, the PCE data provided the latest sign that price pressures are easing in the United States and fueled expectations that the Fed will continue to cut interest rates at the end of 2024.
For now, gold investors will be watching China's Purchasing Managers' Index (PMI) for fresh impetus.
China's official Manufacturing PMI rose to 49.8 in September from 49.1 beating estimates of 49.5, while the NBS Non-Manufacturing PMI unexpectedly fell to 50.0 from August's 50.3 figure.
China's Caixin Manufacturing PMI contracted to 49.3 in September from 50.4 the previous month and the Caixin Services PMI fell to 50.3 in the reported month from 51.6 in August.
