BENGALURU- Gold prices were hovering below recent record peaks on Tuesday after the US Federal Reserve chair tempered expectations for more substantial interest rate cuts this year, with investors looking forward to a series of labor data this week for further insights.

Spot gold was steady at $2,635.58 per ounce, off a record-high level of $2,685.42 reached on Thursday. US gold futures edged 0.1 percent lower to $2,657.00.

Fed Chair Jerome Powell on Monday suggested the central bank will likely pursue quarter-percentage-point interest rate cuts moving forward and was not “in a hurry” after new data boosted confidence in ongoing economic growth and consumer spending.

“We have a series of Fed speakers ahead, but data-dependence from policymakers will likely be the common takeaway, which may leave sentiments more sensitive to economic data to move the dial around rate expectations,” IG market strategist Yeap Jun Rong said.

“Any weaker-than-expected read in the upcoming US labor market data could support views for a more aggressive easing process, which could offer some support for gold prices.”

This week’s data includes US ADP employment figures and nonfarm payrolls, expected to shed light on the health of the US labor market. Speeches from various Fed officials along with US job openings data are also expected later in the day.

According to the CME FedWatch tool, markets now estimate a roughly 64 percent likelihood of a 25-basis-point US rate cut in November, up from 47 percent on Friday.

Israel’s widely expected ground invasion of Lebanon appeared to be getting underway early on Tuesday, as its military said troops had begun “limited” raids against Hezbollah targets in the border area.

Gold, which yields no interest of its own, tends to fall out of favor among investors in a low interest rate environment. Bullion posted its best quarterly gain since 2016 on Monday after the Fed kicked off its interest rate cutting cycle with a half percentage point move in September meeting.