Gold prices fell in early trading on Monday, but remained close to last week's record high and were on track for their best quarterly performance in more than eight years, supported by a U.S. interest rate cut and expectations of another big cut in November.
Update prices
Spot gold was down 0.2 percent at $2,653.38 per ounce by 0404 GMT, pressured by a stronger dollar.
A rising dollar makes gold less attractive to holders of other currencies.
Gold prices have risen more than 14 percent since the start of the current quarter, recording the best quarterly performance since January 2016, and the precious metal is heading for its best third-quarter performance since 2007.
On a monthly basis, gold advanced 6 percent in September after rising to a record high of $2,685.42 on Thursday, driven by a half-percentage-point U.S. interest rate cut, economic stimulus measures in China and continued concerns about war in the Middle East.
U.S. gold futures rose 0.3 percent to $2,695.80.
Data on Friday showed the U.S. economy maintained some of its strong momentum in the third quarter, while inflationary pressures continued to ease. The data reinforced expectations for another big interest rate cut at the Federal Reserve's November meeting.
Non-yielding gold is a preferred investment tool in a low interest rate environment and during geopolitical turmoil.
Among other precious metals, spot silver fell 0.4 percent to $31.49 an ounce after hitting a 12-year high on Thursday. It is on track to rise 8 percent by the end of the quarter.
Platinum lost 0.1 percent to $999.35, while palladium rose 0.1 percent to $1,012.50. Both metals are on track for quarterly gains, according to Reuters data.
