Gold’s rally extended for the second straight day on Monday, reaching a new record high of $3,646 as growing confidence that the Federal Reserve (Fed) will reduce rates at the September meeting increased. Therefore, XAU/USD trades at $3,634, up by more than 1%.
The US Dollar starts the week on the defensive ahead of the release of the preliminary estimate of the annual revision of Nonfarm Payrolls (NFP) by the Bureau of Labor Statistics (BLS) on Tuesday, September 9 at 14:00 GMT.
The USD slumped in response to the weak US NFP data Friday and it retains a soft undertone today. The 22k gain in August jobs was well below expectations and downward revisions to the prior data left the 3 month average job gain at 29k.