XAU/USD: Gold Adds 1% to Approach Record as Jitters Build Up Ahead of Jobs Report

Bullion is playing out its safe-haven characteristics as unnerved investors prepare for volatility from the jobs release today.

• Gold XAUUSD was en route for a third straight winning session with prices well-bid near $2,520 per ounce. The precious metal advanced Friday morning, extending its streak and heading for a weekly gain of a modest 1%. Still, major test looms that may reshuffle the investment landscape — it’s Jobs Day! This means traders and investors will be glued to their triple-monitor setups and watch candles swing wildly, saying “I knew it!”
• The nonfarm payrolls report for August is on deck for release and Wall Street has some relatively high hopes for it. A total of 164,000 new hires are expected to have joined the US economy over the last month. But nothing’s set in stone. Any deviation from that consensus view may throw markets off and send them in full jittery mode. Rings a bell?
• The jobs figure will set the tone for the Federal Reserve’s meeting less than two weeks from now. A figure below expectations could mean a higher-than-expected cut to interest rates, and vice versa. In this context, gold assumed its role as safe haven and attracted risk-averse buyers. Bullion usually performs well when there’s looming uncertainty on the economic or geopolitical front. Gold is within 0.5% from its record high of $2,530 per ounce.