Gold remained steady around $2,655 per ounce on Monday, following a 1% gain in the previous session, as traders evaluated the Federal Reserve’s interest rate trajectory. Recent US inflation reports showed steady producer prices for September, alongside an unexpected rise in jobless claims, casting doubt on the strength of the US labor market under current restrictive interest rates. However, inflation data was mixed, with headline inflation slowing less than anticipated, while core inflation rose more than expected.

The likelihood of a 25 basis point rate cut in November is currently pegged at 87%, and investors are awaiting further economic data, such as retail sales reports and key speeches from Federal Reserve officials. Additionally, ongoing geopolitical uncertainties in the Middle East continue to support gold’s safe-haven appeal, adding another layer of complexity to the market outlook.