Gold Shines as Dollar Weakness Ahead of NFP Favors Precious Metal

The gold price has surged by more than 3.7% over the last two trading sessions, driven mainly by weakness in both the U.S. dollar and the bond market ahead of tomorrow's NFP release.

Markets will focus on the release of the U.S. Non-Farm Payrolls (NFP) report, which measures changes in non-agricultural employment during August. Current expectations point to the creation of around 55,000 new jobs.

The potential impact this report could have on the Federal Reserve's next monetary policy decision is unclear, with officials such as John Williams preferring a wait-and-see approach and Christopher Waller suggesting that he would support leaving rates unchanged if inflation continues to show signs of moderation.