Gold extends rally, notches new record-high above $3,560

• Gold continues to push higher, sets new all-time-high.
• The US Dollar comes under renewed selling pressure after employment-related data.
• XAU/USD remains on track to end the seventh consecutive trading day in positive territory.

Gold extended its uptrend in the second half of the day on Wednesday and touched a new record-high above $3,560. At the time of press, XAU/USD was trading near $3,560, rising 0.85% on a daily basis. For the week, Gold is already up more than 3%.

Gold benefits from renewed USD weakness

Gold capitalized on safe-haven flows on Tuesday and gained more than 1.5%. The intense selloff seen in global bond markets, alongside the bearish action in major equity indexes, caused investors to seek refuge.

Although bond markets are relatively stable on Wednesday, Gold (XAU/USD) preserves its bullish momentum as the US Dollar (USD) stays under selling pressure.

The data published by the Bureau of Labor Statistics showed that Job Openings declined to 7.18 million in July from 7.35 million in June (revised from 7.43 million). This reading came in worse than the market expectation of 7.4 million and revived concerns over worsening conditions in the US labor market ahead of Friday's highly-anticipated employment report.

Reflecting the renewed USD weakness, the USD index was last seen losing 0.25% on the day.

In a report published earlier in the day, OCBC's FX analysts Frances Cheung and Christopher Wong explained that prospects of the Federal Reserve cutting rates, risk of geopolitical tensions persisting for longer and chatters of central banks purchasing Gold were some of the factors driving the prices higher.

"We still continue to watch the price action - if it manages to close above 3500 on weekly and monthly frequency, next resistances are at $3,600, $3,750, and $3,890 levels. Supports are at $3,390 (21-day Moving Average), $3,360 (50-day Moving Average)," they added.