Weaker-than-expected US jobs data has further strengthened hopes that the US Federal Reserve (FED) will cut interest rates in September, while putting pressure on the USD and government bond yields, supporting gold prices.
At 6:29 GMT (1:30 p.m. Vietnam time), spot gold was traded at $3,369.25/ounce. In the second session, the precious metal hit its highest level since July 24. US gold futures remained unchanged at $3,423.20/ounce.
The yield on the benchmark 10-year US Treasury note has also fallen to its lowest level in a month.
Sromatic momentum has improved positively for buyers... Basically, the story of supporting gold prices is the fact that the Fed is still leaning towards the possibility of cutting interest rates in September Kelvin Wong - senior market analyst at OANDA commented.
US job growth in July weakened compared to expectations, while the May and June non-farm payrolls were also adjusted down sharply to 258,000 jobs, showing the labor market situation is deteriorating.
According to the CME FedWatch tool, traders are now predicting a 90% chance of a Fed rate cut in September.
Gold which is considered a safe haven asset in the context of political and economic instability often benefits in a low interest rate environment.
Meanwhile, US President Donald Trump has threatened to increase tariffs on imports from India because New Delhi buys Russian oil. The Indian government called the statement "unreasonable" and said it would protect its economic interests, escalating trade tensions between the two countries.
However, gold is still facing some technical resistance levels.
I have not seen traders push prices up strongly beyond $3,450/ounce, unless there is a clear enough catalyst to push gold prices above this level, Wong added.
In other precious metals, spot silver prices moved sideways at 37.38 USD/ounce, platinum prices fell 0.2% to 1,326.20 USD, and palladium lost 0.3%, to 1,203.15 USD.
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