Safe-haven gold has been consistently rising for six consecutive days above $3,450 as the market continues to assess the Fed-Trump conflict and trade war uncertainty that has caused the US dollar to weaken for a long time.
At 9.10 am, gold prices were at $3,488.28, up 0.37% since it opened early Tuesday in Asian trading.
Last week's PCE inflation data showed a figure close to 3%, which is high on an annual basis, far exceeding the Fed's 2% target.
Fed Chairman Jerome Powell reported weakness in the US labor market during a speech in Jackson Hole, while taking a focused approach to employment data and ignoring the important core PCE Price Index report.
While inflation remains above target, expectations for a rate cut continue due to the weakness in the labor market.
The chances of a September Fed rate cut remain high with a probability of 85%, according to the Prime Market Terminal interest rate probability tool.
For now, market participants will focus on the US Non-Farm Payroll (NFP) figures as well as further developments regarding the standoff between Governor Lisa Cook and President Donald Trump.
