Gold prices hovered close to record levels on Monday, extending last week’s rally after weak U.S. labor market data reinforced expectations that the Federal Reserve could lower interest rates as early as next week.

Spot gold was steady at $3,585.68 per ounce, just below Friday’s all-time high of $3,600.03. U.S. gold futures for December delivery slipped 0.7% to $3,626.52/oz by 01:39 ET (05:39 GMT).

Bullion gained more than 4% last week and has advanced in nine of the past ten sessions. Year-to-date, gold is up nearly 37%, driven by safe-haven flows tied to U.S. trade policy uncertainty under President Donald Trump and persistent central bank purchases, particularly from China.

Fed Rate-Cut Bets Gain Momentum

Friday’s U.S. jobs report showed a sharp slowdown in employment growth and a rise in the unemployment rate to 4.3%, bolstering bets on monetary easing. Markets are now pricing in a 25-basis-point cut at the Fed’s September meeting, with some probability of a larger 50-basis-point move.

Lower interest rates reduce the opportunity cost of holding non-yielding assets such as gold while weighing on the dollar, making bullion more attractive to investors.

Dollar Steadies After Selloff

The U.S. Dollar Index Futures was little changed on Monday, consolidating after sharp losses on Friday that followed the jobs data. Dollar weakness has been a key factor supporting bullion in recent sessions.

Inflation Report Next in Focus

Market participants now turn to Thursday’s release of the U.S. inflation report, which could provide additional clarity on the Fed’s policy path. Stronger-than-expected figures may temper expectations for aggressive easing, while weaker data could further fuel gold’s upward momentum.