FUNDAMENTALS
* Spot gold fell 0.5% to $2,732.90 per ounce, as of 0057 GMT. Prices hit a record high of $2,758.37 on Wednesday while ending nearly 1% higher last week.
* U.S. gold futures declined 0.33% to $2,745.30.
* The dollar index gained 0.2%, making gold less appealing for other currency holders, while U.S. bond yields also rose. * Data on Friday showed that U.S. consumer sentiment climbed to a six-month high in October, with the uptick most pronounced among Republicans who grew more confident of a Donald Trump victory.
* Elsewhere, Israel’s airstrikes “hit hard” Iran’s defences and missile production, Prime Minister Benjamin Netanyahu said on Sunday, as Iranian Supreme Leader Ayatollah Ali Khamenei said the country was considering its response.
* Bullion thrives in a low interest rate environment and is considered a hedge against political and economic uncertainty.
* Markets are pricing in a 94.8% chance for a 25-basis-point cut at the Fed’s November meeting, according to CME’s FedWatch Tool.
* Uncertainty looms as the U.S. approaches Election Day on Nov. 5, with recent polls indicating a fiercely competitive race between Donald Trump and Kamala Harris.
* Traders will be closely monitoring the U.S. employment report scheduled for release on Friday, as they seek further insights.
* On the physical front, gold demand in India ticked up last week ahead of a key festival but record-high prices discouraged many retail buyers from making their usual festive purchases.
* Spot silver fell 0.4% to $33.57 per ounce, while palladium rose 0.23% to $1,025.15, platinum edged 0.2 down to $1,190.97.