Gold prices opened broadly flat as prospects of the US Federal Reserve cutting interest rates in September remain a major focus for investors.
As of 18:57 ET (22:57 GMT), the price was down 0.06% to $2,498.10.
The precious metal has performed well last month, hitting an all-time high of $2,531.60 on August 20. However, market attention is now shifting to the US non-farm payrolls report expected to be released on Friday.
The report’s findings will play an important role in shaping expectations for upcoming interest rate decisions by the Federal Reserve.
August’s labor market data is seen as crucial in determining whether the Fed cuts interest rates by 50 or 25 basis points at its September meeting.
Traders have adjusted their expectations slightly, with the likelihood of a 25 basis point cut now at 69%, while the likelihood of a larger 50 basis point cut has fallen to 31%, according to the CME FedWatch tool.
Demand for physical gold remains sluggish in key Asian markets as new import quotas have not provided the expected boost to Chinese demand.
