Gold Set for Quarterly Gains; Fed’s Powell comments in focus

BASICS

* Spot gold rose 0.2% to $2,662.3 an ounce at 0036 GMT. Bullion closed down 0.5% on Friday, snapping a six-session rally.

* Gold is up almost 15% this quarter, marking its fourth consecutive quarterly gain.

* Friday’s data showed the U.S. consumer spending rose moderately in August, suggesting the economy maintained some of its strong momentum in the third quarter, while inflationary pressures continued to decrease.

* The data raised expectations of a huge interest rate cut at the Fed’s November policy meeting. * Traders currently see a 53% chance of another half-percentage-point cut by the Fed at its next meeting, according to the CME FedWatch Tool. * Lower interest rates reduce the opportunity cost of holding bullion, which They are also considered a safe asset during economic and political turmoil.

*Israel murdered Hezbollah leader Sayyed Hassan Nasrallah in a powerful airstrike in Beirut, dealing a heavy blow to the Iran-backed group as it reels from a growing campaign of Israeli attacks.

* Market participants’ attention will now turn to speeches by Powell and Fed Governor Michelle Bowman later in the day.

*On the physical front, gold demand contracted in key Asian centers last week, as prices hitting record levels deterred buyers and encouraged some to cash in on their holdings.

* SPDR Gold TrustThe world’s largest gold-backed exchange-traded fund, said its holdings fell 0.59% to 871.94 metric tons on Friday.

* Spot silver rose 0.2% to $31.68 an ounce, platinum gained 0.4% to $1,004.10 and palladium rose 0.2% to $1,013.5.

DATA/EVENTS (GMT) 0130 China NBS Manufacturing PMI September 0145 China Caixin Manufacturing PMI Final September 0145 China Caixin Services PMI September 0600 UK GDP AA Q2 0600 UK National House Price MM September 0600 National house prices in the United Kingdom Year September 0600 GDP of the United Kingdom Q2 Q2 1200 CPI of Germany Prelim AA September 1200 IPCA of Germany Preliminary AA September.