Gold started the week with a significant bullish trend to break new highs above $3,600, following growing confidence that the Federal Reserve (Fed) will cut interest rates at its September monetary meeting.
At 9.15 am, gold prices were at $3,639.78, up 0.08% since it opened early Tuesday in Asian trading.
The safe-haven asset support came as the US dollar (USD) weakened and the potential for Fed policy easing loomed.
Last week’s economic reports showed the US labor market losing momentum, especially Friday’s Non-Farm Payroll (NFP) data showing an increase of just 22,000 versus expectations of 75,000.
In addition, the unemployment rate rose to 4.3%, the highest since late 2021.
Fed Chairman Jerome Powell in his speech during Jackson Hole strongly warned that US employment data is getting worse, with supply and demand opportunities recording declines.
Meanwhile, broad market sentiment remains supportive of gold as global central banks continue to increase their holdings in their reserves against the US dollar and Treasuries amid inflation concerns.
At the same time, geopolitical tensions and ongoing global trade conflicts will drag on investor confidence to shift their capital to safe assets.
