Warning Sign, Gold Hits the Brakes Ahead of NFP!

<p>&nbsp;Gold prices held steady around one-month highs as investors took a cautious approach ahead of the release of US NFP jobs data.</p><p><br /></p><p>Early trading in the Asian session saw the yellow metal hovering around $1,940 per ounce, down slightly from the high of $1,947 per ounce reached earlier.</p><p><br /></p><p>Gold prices have posted sustained gains this week, rebounding further from their lows following a slide in trading in the US dollar and US 10-year bond yields.</p><p><br /></p><p>The US economy expanded more slowly in the second quarter with growth of 2.1% from 2.4% previously, while private sector ADP employment data showed a weaker increase in employment in August.</p><p><br /></p><p><br /></p><p>This pushed the US dollar lower on Wednesday, before it rebounded to trade steadier today against other major currencies.</p><p><br /></p><p>Meanwhile, personal consumer expenditure (PCE) data, the main indicator of Federal Reserve (Fed) inflation showed an increase in the annual rate from 4.1% to 4.2% in July.</p><p><br /></p><p>Investors then turned their attention to the NFP data in the New York session which could provide an indication of the health of the labor market in the US.</p>