Gold rose sharply in late Asian trade to recapture above $2,500 and close to an all-time high as market participants remained high on expectations of a US interest rate cut.
At exactly 9.40 am, the price of gold was at $2,515.22 which is a slight decrease of 0.6% since it opened in early Asian trading on Friday.
Recent US employment data showed mixed readings even though it is still in the potential for a cooling labor market. This continues to fuel speculation for a 50 basis point interest rate cut by the Federal Reserve (Fed) over the course of two weeks.
However, the world's giant economy remained resilient as business activity in the services sector improved against forecasts for a slowdown.
US Treasury yields fell with the 10-year note down three basis points to 3.727% and hurt the position of the US Dollar Index (DXY). A measure of the USD's value against six other currencies fell more than 0.21% to 101.05.
Meanwhile, gold investors are gearing up for the release of the Non-Farm Payroll (NFP) report for August which will be presented on Friday night.
