The gold bullion market has been holding above $3,590 since last weekend, nearing a fresh high as weak US jobs data reinforced expectations of a Federal Reserve (Fed) interest rate cut at its meeting next week.
At 9.10am, gold prices were at $3,586, unchanged since they opened early Monday in Asian trading.
The US Non-Farm Payrolls (NFP) report on Friday showed a slowdown in hiring for August, while the unemployment rate rose to its highest level since 2021, a clear sign that the labor market conditions in the world's largest economy are deteriorating.
The report raised expectations of a Fed rate cut, providing some support for gold.
The market has now raised expectations of a 25 basis point interest rate cut in September to 84%, while for 50 basis points it is only 16%.
In addition, increased demand from major central banks contributed to the increase in gold prices. Official data showed on Sunday that the People's Bank of China (PBoC) added gold to its reserves in August, extending bullion purchases to a 10th consecutive month.
Meanwhile, investors will be evaluating the US Producer Price Index (PPI) for August this week. The Fed's inflation gauge will be the next gauge of interest rates and the US dollar's position.
