Gold (XAU/USD) begins the week on an impressive bullish note, soaring to fresh all-time highs above $3,600 per ounce on Monday.

The move extends last week's rally amid growing conviction that the Federal Reserve (Fed) will cut interest rates at its September monetary policy meeting, a shift markets now treat as a near certainty following a string of weak US labor market data. The yellow metal has already climbed about 38% so far this year, underscoring its strong appeal as investors flock to safe-haven assets.

At the time of writing, XAU/USD is trading around $3,635, pushing into uncharted territory as a broadly weaker US Dollar (USD) and expectations of imminent Fed monetary easing keep demand elevated. Last week's economic releases confirmed that the US labor market is losing momentum.

As the employment Nonfarm Payrolls (NFP) report showed on Friday, the US economy added just 22K jobs in August, far below the 75K forecast, while the Unemployment Rate climbed to 4.3%, its highest since late 2021.

Fed Chair Jerome Powell, in his Jackson Hole remarks late in August, warned that "downside risks to employment are increasing," describing the labor market as in a "curious kind of balance" where both supply and demand for workers are softening.

Moreover, broader sentiment continues to lend strong support to Gold. Global central banks continue to add to their reserves to diversify away from the US Dollar and Treasuries amid concerns over inflation, weakened confidence in policymakers, and threats to the Fed's independence. At the same time, geopolitical tensions and ongoing global trade frictions are adding to safe-haven demand, reinforcing Gold's role as a store of value as it holds near record levels.

Source: Fxstreet