Gold held steady on Monday as investors prepared for a key week for the global economy ahead of the U.S. presidential election and the likelihood of another rate cut by the Federal Reserve.

Spot gold edged up by 0.1% to $2,738.32 per ounce, as of 0227 GMT. Bullion hit a record high of $2,790.15 on Thursday.

U.S. gold futures were flat at $2,747.80.

Uncertainty this week could benefit gold, as delays in the election outcome or a split control of the House and Senate might drive safe-haven flows, pushing gold prices higher, said Tim Waterer, chief market analyst at KCM Trade.

The U.S. presidential election is on Tuesday, with opinion polls too close to call a winner between Democratic candidate Kamala Harris and Republican Donald Trump.

"The U.S. dollar has lost some traction to start the week, which has left the door open for gold to grind higher," Waterer said.

The dollar index was down 0.5%, holding close to a near 2-week low hit in the previous session. A weaker dollar makes gold more appealing for other currency holders.

Market focus is also on the Fed's interest rate decision and Chair Jerome Powell's remarks on Thursday.

Currently, traders anticipate a 98% chance of a quarter-point rate cut this week, the CME FedWatch tool showed.

Gold is considered a safe investment during times of economic and geopolitical turmoil and it thrives in a low interest rate environment.

In China, the Standing Committee of the National People's Congress meets from Nov. 4-8, with markets widely expecting the approval of more fiscal stimulus measures. China is a key metals consumer.

Among other metals, spot silver rose 0.3% to $32.51 per ounce. It hit a more than 2-week low earlier in the session.

Platinum edged up 0.3% to $994.85 and palladium climbed 0.8% to $1,106.75.

(Reporting by Daksh Grover in Bengaluru; Editing by Rashmi Aich and Subhranshu Sahu)