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Gold strengthened on Thursday as the dollar and Treasury yields retreated amid increasing expectations of US interest rate cuts possibly starting in September.
Investors were also awaiting the US non-farm payrolls data.
At 0258 GMT, spot gold was up 0.8% at $2,373.31 per ounce, following a 1% increase in the previous session. Meanwhile, US gold futures rose 0.7% to $2,392.80, according to Reuters.
The dollar index was down 0.2%, remaining near a nearly two-month low, while benchmark US 10-year Treasury yields hovered near their lowest levels in over two months.
Tim Waterer, chief market analyst at KCM Trade, noted, "Buyers were giving the US dollar the cold shoulder today following the weak ADP in the lead up to the non-farm payrolls data (NFP) which enabled the gold price to prosper."
He added, "The fundamental outlook still looks constructive for gold as we move closer towards possible Fed rate cuts in the second half of the year."
It is anticipated that the Federal Reserve will cut its key interest rate in September and once more this year, according to a majority of forecasters in a Reuters poll.
This also presents a significant risk they may opt for only one or none at all.
Lower interest rates diminish the opportunity cost of holding non-yielding bullion.
Additionally, spot silver rose 1.8% to $30.54 per ounce, platinum was up 1.2% at $1,003.95, and palladium gained 1.2% to $942.75.
