US CPI, PPI data due later this week
Israel bombed targets in Lebanon and Gaza Strip on Sunday
China cenbank pauses gold purchases for 5th month in Sept

Oct 7 Reuters Gold prices eased on Monday as bets firmed for a smaller U.S. rate cut in November after strong jobs data, while investors awaited inflation data and comments from Federal Reserve officials for further cues.

Spot gold slipped 0.3 to 2,643.13 per ounce by 0649 GMT. U.S. gold futures edged 0.2 lower to 2,662.70.

The strongerthanexpected September jobs report, released on Friday, poured cold water on expectations of a large Fed rate cut next month, boosting the dollar.

Traders now see a 95 probability that the Fed will cut rates by only a quarter of a percentage point next month.

Geopolitical risks in the Middle East could support safehaven flows for the yellow metal, which limit the downside from a lessdovish market rate pricing, IG market strategist Yeap Jun Rong said.

Bullion tends to be a preferred investment in a low interest rate environment and during political and economic uncertainties.

This week, market participants will focus on minutes of the Fed39;s last policy meeting, and the U.S. Consumer Price Index CPI and Producer Price Index PPI data. A slew of U.S. central bank officials are also speaking this week.

In the Middle East, Israel bombed Hezbollah targets in Lebanon and the Gaza Strip on Sunday ahead of the oneyear anniversary of the Oct. 7 attacks that sparked its war.

Elsewhere,…