Gold rose sharply at the start of the Asian trading session after the Federal Reserve (Fed) decided to keep rates unchanged in July.
Fed Chairman Jerome Powell hinted that US employment data will play an important role in setting the next monetary policy.
At 9.30am, the price of gold was at $2,454.80 which is up 0.25% since it opened in early Asian trading this morning.
Meanwhile, Wall Street traded higher after Powell's press conference. During his speech, he said the process of disinflation recorded progress and believed there was a risk of a decline in the labor market.
The Fed feels the labor market report is one of the ones to emphasize because it is an important gauge of inflation despite the potential for a downturn.
Additionally, the July Non-Farm Payrolls (NFP) report to be presented Friday will be an important guide for the Fed to look at the forecast of the next position in employment data.
However, the market has set as much as 70 basis points for an interest rate cut by the end of the year.
In its recent statement, the FOMC committee did not expect it to be appropriate to reduce the target range until it gained confidence that inflation was moving in line with the 2% expectation.
The price of the yellow metal saw a surge following the geopolitical conflict due to Hezbollah's attack on Israel in response to the assassination of Hamas leader Ismail Haniyeh in Iran.
