WASHINGTON (dpa-AFX) - Gold futures settled modestly higher on Monday, extending gains to a fourth straight session amid continued optimism about more interest-rate reductions by the Federal Reserve in coming months.
Geopolitical tensions also contributed to continued demand for the safe-haven yellow metal.
A slightly stronger dollar limited gold's upside. The dollar index, which climbed to 101.23 in the European session, eased to 100.90, but still remained above the flat line, gaining about 0.18%.
Markets await speeches from several Fed officials including regional presidents Raphael Bostic and Austan Goolsbee this week.
Fed Governor Christopher Waller said in an interview on Friday that policymakers still have much room to lower rates over the next six to 12 months, but the pace of reductions in turn would be determined by incoming data on the jobs market and inflation.
According to CME FedWatch, Fed futures traders currently price in 75 bps in rate cuts by the end of this year, and nearly 200 bps in cuts by December 2025.
The Swiss National Bank meets Thursday and markets have fully priced in a quarter-point cut. Sweden's central bank is also expected to ease rates by 25 points when it meets on Wednesday.
Gold futures for September ended up by $6.60 or about 0.25% at $2,626.50 an ounce.
Silver futures for September ended down $0.409 or about 1.3% at $30.767 an ounce, while Copper futures for September climbed to $4.2885 per pound, gaining $0.0070.
U.S. reports on durable goods orders, new home sales and consumer confidence are likely to garner investor attention this week along with a report on personal income and spending that includes the Fed's preferred inflation gauge.
On the geopolitical front, Israel's military pounded targets in south and east Lebanon today and said more strikes were coming.
A military spokesman has warned of 'extensive, precise' strikes against Hezbollah and called for civilians to evacuate or move away from areas in which the militant group operates.
Hezbollah launched more than 100 rockets early Sunday across a wider and deeper area of northern Israel after the country allegedly detonated several electronic devices used by the Lebanese group.
The escalating cross-border violence threatens to erupt into a full-blown war as U.S. President Joe Biden and U.N. officials call for restraint.
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