• Gold hits a new record high, driven by expectations of a Fed rate cut in November and falling US Treasury yields.
• Mixed US economic data reveals manufacturing weakness but services sector resilience, according to S&P Global Flash PMIs.
• Fed officials express caution about aggressive rate cuts, maintaining flexibility in policy while noting growing labor market risks.
• Rising tensions between Israel and Hezbollah heighten safe-haven appeal, potentially driving further demand for Gold.

Gold's price rose marginally on Monday, hitting an all-time high above $2,630, fueled by increasing bets that the US Federal Reserve (Fed) will lower interest rates in November. The XAU/USD trades at $2,627, registering more than 0.20% gains.

US equities showed an improvement in risk appetite on Monday. Bullion traders reached record peaks during the last two trading days, irrespective of a firm US Dollar. The main driver seems to be the drop in US Treasury yields, with the 10-year T-note yielding 3.741%, failing to edge higher amid the Fed speaker's pullback against aggressively lowering rates.

Data from the United States (US) was mixed. S&P Global revealed its Flash PMIs, painting a gloomy outlook for manufacturers, while the services sector remained resilient despite decelerating modestly compared to August’s data.

In the meantime, the Atlanta Fed GDP Now model projects the economy to grow 2.9% in Q3 2024, even though the labor market has softened.