Gold prices were trading in a tight range on Thursday as traders remained on the sidelines ahead of a key US economic data that may provide clues about the size of the Federal Reserve’s interest rate cuts expected later this year.

Spot gold was flat at $2,655.03 per ounce by 0333 GMT.

Prices hit a record high of $2,685.42 on Sept. 26.

US gold futures gained 0.2% to $2,675.40.

Gold is consolidating at this point of time but expect prices will retest the all-time high of $2,685 as charts show persistent strong upward trends, said Brian Lan at Singapore-based dealer GoldSilver Central.

Investors are watching out for the ISM services data and the initial jobless claims, due later in the day, along with the US non-farm payroll data expected on Friday.

Data on Wednesday showed that US private payrolls increased more than expected in September - further evidence that labour market conditions were not deteriorating.

Expectations of another 50-basis-points rate cut at the Fed’s November meeting have dipped, with markets currently pricing in a 36% chance, down from 57% last week, according to CME’s FedWatch Tool.

Gold tends to thrive in a low interest rate environment and political turmoil.

“Middle East tensions and US elections will continue supporting bullion in the longer term… In the short-tem, some funds might shift to oil from gold since oil is doing better,” Lan added.

Gold price per tola increases Rs600 in Pakistan

Israel bombed central Beirut, killing at least six, after its forces suffered the deadliest day on the Lebanese front in a year of clashes against Iran-backed armed group Hezbollah.

Elsewhere, Perth Mint’s gold product sales touched a 10-month high in September, while silver sales hit a seven-month high.

Spot silver fell 0.9% to $31.58, platinum shed 0.5% to $997.90 and palladium lost 1.3% to $1,001.80.