Gold rose to a new all-time high above $2,550 after US economic data strengthened the Federal Reserve's (Fed) plan to cut interest rates next week.
At 9.50am, the price of gold was at $2,561.28, up 0.12% since it opened in early Asian trading on Friday.
However, gold rose significantly when it opened at $2,511 and it rebounded to $2,560 for a gain of 1.68% in yesterday's session.
Optimistic sentiment as Wall Street posted gains as the US Labor Department revealed that Initial Jobless Claims for the week ending September 7 rose as expected, rising above the previous week's reading.
In addition, other data shows that prices paid by manufacturers such as factory inflation rose above estimates due to higher service costs.
The CME FedWatch tool shows that market participants are pricing in an 85% chance of the Fed cutting rates by 25 basis points and a 15% chance of a 50 basis point cut.
While US data fueled hopes of Fed policy easing, the European Central Bank (ECB) cut rates by a quarter of a percentage point boosting the EUR/USD market.
For now, XAU/USD investors will be looking at the Consumer Sentiment survey released by the University of Michigan on Friday.
