The yellow metal continued its modest rise since Monday as expectations that the Federal Reserve (Fed) may cut interest rates after the weak Non-Farm Payrolls (NFP) report on Friday.
At 9.20 am, gold prices were at $3,379.73, up 0.17% since it opened in early trading on Tuesday in the Asian session.
Expectations that the Fed will cut interest rates as high as 87% at its meeting on September 17.
Last week's employment data revealed the first cracks in the deteriorating labor market.
In addition, the latest data convinced Fed Governor Christopher Waller to switch to a 'dovish' tone while commenting that tariff inflation is only temporary and concerns about the weakening US jobs data.
The US Dollar Index (DXY) pared some of its early gains and rose 0.07% above 98 points.
US Trade Representative Jamieson Greer said that the tariffs imposed by US President Trump last week are likely to remain as part of ongoing negotiations.
Last week, Canada, Brazil, India, Taiwan and Switzerland were hit with tariffs ranging from 20% to 39%.
Meanwhile, the market will now assess the Services PMI release, Jobless Claims, Consumer Sentiment data and speeches from Fed officials.
