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Gold prices steadied on Monday amid a risk-off mood driven by an underwhelming China fiscal stimulus, while investors awaited comments from U.S. Federal Reserve officials for hints on its interest rate outlook.

Spot gold edged up 0.1% at $2,658.67 per ounce by 0944 GMT, after hitting its highest since Oct. 4 at $2,666.72 earlier in the session. U.S. gold futures were flat at $2,676.

"Although moves are small, feels like a risk-off environment, with the white metals down and the yellow metal up," UBS analyst Giovanni Staunovo said.

Stock markets held below last month's record highs, while the Chinese yuan and oil prices weakened as China's broad economic stimulus promises made over the weekend failed to inspire investors. [MKTS/GLOB]

China seems committed to a fiscal stimulus, but we probably need to wait to see what the concrete measures are, said Tim Waterer, chief market analyst at KCM Trade, adding that a healthier Chinese economy bodes well for gold demand.

China is the world's biggest consumer of the safe-haven bullion, which tends to gain when investors sell risky assets.

Traders are now looking out for comments from Fed officials this week for more clues on future interest rate cuts, along with U.S. retail sales data.

Investors see about 88% chance of the Fed cutting rates by 25 basis points in November, as per the CME FedWatch tool. Lower borrowing rates boost the appeal of holding gold, which yields no interest.

"Geopolitical tensions remain high, particularly with respect to the Middle East, where the market is bracing for another round of armed retaliation. This undoubtedly remains a support for the yellow metal," said Kinesis Money market analyst Carlo Alberto De Casa in a note.

Spot silver fell 0.4% to $31.41 per ounce and platinum shed 0.6% to $979.26. Palladium fell 1.5% to $1,053.22.