• Gold extends its recovery after the release of more weak jobs’ data out of the US. 
• The data increases the chance of the Federal Reserve lowering interest rates aggressively – a plus for Gold.  
• US Nonfarm Payrolls data out on Friday will be the most important release in shaping interest-rate expectations.     

Gold (XAU/USD) trades back inside familiar territory, exchanging hands in the $2,510s on Friday after extending its rebound following the release of more weak jobs’ data from the US on Thursday, this time in the form of private payrolls data, which grew at a slower pace than expected. 

Although the negative data was tempered by a marginal fall in unemployment claims, it still painted a picture of a stagnant jobs market going into Friday’s much-anticipated official Nonfarm Payrolls (NFP) report from the US Bureau of Labor Statistics (BLS), which is scheduled for release at 12:30 GMT. 

The NFP is likely to be critical in shaping expectations for the future path of interest rates in the US and the value of the US Dollar (USD), two important factors for determining the price of Gold.