Gold prices hover near a three-month low as the market awaits guidance from the Federal Reserve meeting.

1. On Monday, gold prices hovered near a three-month low, with spot gold currently trading around $3983.43 per ounce, down approximately 0.3%. Investors are waiting for this week's Federal Reserve policy meeting to look for clues about policymakers' views on the outlook for U.S. interest rates. Gold prices touched their lowest level since mid-July in the previous trading session; last week, gold prices fell a cumulative 4%, marking the largest single-week drop since June.2. Persistently high energy prices have reinforced market expectations that the Federal Reserve will "maintain higher interest rates for a longer period," thereby increasing the opportunity cost of holding non-yielding gold.3. In terms of geopolitics, Saudi Arabia stated that two terminals at its main airport resumed operations on Sunday, but Yemen's Houthi forces vowed to continue attacking the facility, calling it a "military target." According to an informed official, Qatari mediators were in Tehran on Sunday to broker talks as part of coordinated efforts with the U.S. to ease regional tensions.4. A survey released last Friday showed that, affected by rising prices triggered by conflict in the Middle East, the U.S. consumer confidence index for October slipped slightly and continued to hover near historic lows. With the midterm congressional elections approaching and the cost of living issues in focus, households' pessimism about the economy deepened further.5. U.S. business activity slowed slightly in October, but strong demand allowed companies to raise prices for goods and services, indicating that inflation may intensify further and remain elevated in the coming months.6. The market is currently waiting for this week's Federal Reserve policy meeting and the Personal Consumption Expenditures (PCE) Price Index data. Traders currently estimate the probability of a rate hike this week to be about 9%, with expectations for a December rate hike holding at 80%.