Gold prices held steady on Monday, August 19, near a record high hit in the previous session, as expectations of a U.S. interest rate cut next month boosted the precious metal's appeal.
Spot gold fell 0.2% to $2,501.19 an ounce, having hit an all-time high of $2,509.65 an ounce on Friday.
U.S. gold futures rose 0.1% to $2,540 an ounce.
Data released on Friday showed that construction of single-family homes in the United States fell in July as higher mortgage rates and home prices kept potential buyers on the sidelines, suggesting that inflation is turning lower.
US data and expectations of the Federal Reserve decision
Last week, strong retail sales figures and lower-than-expected jobless claims, along with moderate inflation data, restored confidence in the world's largest economy.
Traders are confident that the US Federal Reserve will cut interest rates on September 18.
The focus now is on the size of the cut, with the Fed estimating a 75.5% chance of a 25 basis point cut and a 24.5% chance of a 50 basis point cut, according to CME's FedWatch market monitor.
The low interest rate environment is likely to boost the appeal of non-yielding gold.
The market will now await the minutes of the US Federal Reserve's July policy meeting on Wednesday and a speech by Fed Chairman Jerome Powell on the US economic outlook on Friday for further clues.
Other precious metals
Among other precious metals, spot silver fell 0.22% to $28.94 an ounce. Platinum fell 0.1% to $953.06 an ounce. Palladium fell 0.8% to $943.46 an ounce.
