The yellow metal managed to break above $3,350, continuing its positive trend since the opening of the week for the third consecutive day, as the market now awaits clues from the US Producer Price Index (PPI) and the Early Weekly Unemployment report.
At 10.20 am, gold prices were at $3,367.72, up 0.36% since it opened in early trading on Thursday in the Asian session.
The latest moderate US inflation data report reinforced expectations for a Federal Reserve (Fed) rate cut at its September meeting and raised the possibility of a reduction as expected by the end of this year.
The news dragged the US dollar lower and provided price support for safe-haven commodity gold.
The market is now strengthening the 94% probability of a September policy easing after moderate July inflation data indicated a limited path from US President Donald Trump's import tariffs.
US President Donald Trump on Monday agreed to delay the implementation of sweeping tariffs on China, extending it for another 90 days after the last deal between the world's two largest economies was due to expire.
