Gold prices edged up on Monday, hovering below a record high hit in the previous session, as escalating tensions in the Middle East lifted bullion's safe-haven appeal. Spot gold was up 0.3% at $2,350.59 per ounce. Bullion hit an all-time high of 2,431.29 on Friday. U.S. gold futures fell 0.3% to $2,366.40 per ounce. The first direct attack on Israel by arch foe Iran has shaken Israelis and left them fearful that a bigger war is looming. Recent U.S. economic data on the labor market and inflation have caused market expectations for a rate cut from the Fed to be dialled back yet again. Chicago Federal Reserve President Austan Goolsbee said continued high consumer price index readings were concerning, but he remains focused on how the Fed's targeted personal consumption price expenditures index behaves. Federal Reserve Bank of Boston President Susan Collins is eyeing a couple of interest rate cuts this year amid expectations it could still take some time to get inflation back to targeted levels. Higher interest rates reduce the appeal of holding non-yielding gold. Inflation in the euro zone is different to that in the U.S., much as ECB President Christine Lagarde insists, but the bloc will still face many of the same headwinds as others, limiting how far price growth can slow.