Gold surged to a record high on Tuesday and the US dollar lingered near its weakest level in five weeks, with global investors bracing for a series of labour market releases that could shape the Federal Reserve’s next policy move, according to Reuters.

The immediate focus is on Friday’s nonfarm payrolls report, preceded by data on job openings and private-sector hiring. Together, the figures will offer fresh signals on the resilience of the US labour market, now central to the debate over how aggressively the Fed should ease monetary policy.

Markets have largely priced in a 25 basis point cut in September, but the possibility of a larger move remains on the table. “While an outsized 50 bps rate cut in September is not the base case expectation currently, it cannot be ruled out altogether if the August jobs data shows exceptional weakness,” said Vasu Menon, managing director of investment strategy at OCBC Bank. He added that unlike in 2024, when the Fed responded to a sharp slowdown in job growth with a larger cut, policymakers this year must also weigh the inflationary risks from new tariffs.

The August inflation report, due September 11, is expected to provide further clarity just a week before the central bank convenes.

Equity markets reflected cautious optimism. MSCI’s Asia-Pacific index outside Japan gained 0.2 percent, while the Nikkei rose 0.39 percent after a sharp decline on Monday. Chinese stocks extended their rally, with the CSI300 reaching a three-year high for the third consecutive session, though Hong Kong’s Hang Seng slipped 0.19 percent after strong gains a day earlier. European and Nasdaq futures edged higher, while Wall Street remained closed for a holiday.

In currency markets, the euro stood at 1.1706 US dollars, sterling held near two-week highs at 1.3535, and the yen traded at 147.31 against the dollar ahead of a bond auction in Tokyo. The dollar index was steady at 97.717, close to Monday’s trough, while US 10-year Treasury yields inched up to 4.251 percent.