Gold hovered around $2,640 per ounce on Monday, near record highs, as investors awaited a crucial US Federal Reserve policy decision later this week. Traders are pricing in a 25bps reduction at the Fed's upcoming meeting amid signs of labor market weakness, with some expecting that easing could extend into next year. Before the Fed’s announcement, attention will be on the retail sales and industrial production data, which could offer more signals on the strength of the US economy and the central bank's scope for additional rate cuts. Meanwhile, the Trump administration on Sunday renewed its request to a federal appeals court to fire Fed Governor Lisa Cook, heightening concerns over the Fed’s independence. Elsewhere, market participants are also closely watching the US–China negotiations in Madrid, which started on Sunday.