Gold maintained its high position since Friday following the sentiment of high interest rate prospects in the United States with the expectation of a decrease ahead of the September meeting.
As of 9.30am, gold was at $2,503.88 with a lackluster gain of 0.02% since it opened in early Asian trade on Tuesday.
The high increase last Friday was an unexpected surprise because market sentiment expected the position of investors to naturalize 'sell' activities instead of 'buy'.
Recent positions see the price to rebalance by reacting in the opposite direction.
Since last week, the future forecast of interest rate cuts has become clearer after the release of some data that moved under the radar of expectations.
Investors priced in at least a 50% chance the Fed will cut interest rates by 0.50% at their September meeting and now the odds are back up to 100% with at least a 0.25% cut.
However, the precious metal saw significant gains due to two important factors, namely sentiments of US economic resilience and geopolitical tensions in the Middle East.
The weaker value of the US dollar currency also helped the price of gold to continue to stick to the position of $2,500 per ounce that was reached last week.
