Bullion continued to extend gains since the beginning of the week as investors became more confident that the Federal Reserve (Fed) is likely to cut interest rates at its meeting next week.
At 9.15 am, gold prices were at $4,211, down 0.49% from Tuesday's opening in the Asian session.
Gold also gained momentum as policy tightening by central banks, especially the Bank of Japan (BoJ) after Governor Kazuo Ueda's statement, as well as the Federal Open Market Committee's (FOMC) cautious stance continued to support demand for the safe-haven asset.
Overall, gold prices have risen nearly 4% since last week and are now poised to test the $4,300 level by year-end.
On the data front, the Institute for Supply Management (ISM) reported that US manufacturing activity contracted for the ninth consecutive month in November. Additional ISM data showed input prices rose, while the labor market remained weak with hiring rates low.
Meanwhile, physical demand for gold in China continues to decline due to high prices, causing hundreds of stores to close, according to the Financial Times.
This week, the US economic docket will feature several important data such as ADP Employment Change, ISM Services PMI, Initial Jobless Claims, as well as the Fed's preferred inflation benchmark, Core PCE.
