Gold prices rose on Friday, supported by safe-haven demand from the Middle East conflict, as the spotlight turned to the U.S. jobs report to assess the trajectory of policy the Federal Reserve.
Spot gold was up 0.3% at $2,662.50 an ounce, by 0325 GMT, after hitting an all-time high of $2,685.42 on September 26. Bullion gained 0.2 for the week.
U.S. gold futures rose 0.1% to $2,682.10.
The dollar fell 0.1%, retreating from a one-month high, making bullion cheaper for holders of other currencies. [USD/]
Geopolitical tensions, particularly regarding Israel and Iran, are supporting gold prices and unless these risks subside, prices are likely to remain near record levels, said Ajay Kedia, director at Kedia Commodities, in Mumbai.
The United States plans to strike Iranian oil facilities in retaliation for Tehran’s missile attack on Israel, President Joe Biden said, while the Israeli military carried out new airstrikes on Beirut as part of its fight against the Lebanese armed group Hezbollah.
Bullion is considered a safe investment in times of political and financial uncertainty, and thrives in a low interest rate environment.
US non-farm payrolls data is due at 1230 GMT. New York Fed President John Williams and Chicago Fed President Austan are also expected to speak later today.
If the NFP report turns out to be strong, it will be positive for the dollar and gold prices will then see profit-taking, Mr Kedia added.
Traders see there as a 69% chance the Fed will cut rates by 25 basis points in November, according to the CME’s FedWatch tool.
BMI said in a note that it expected gold prices to trade in a range of $2,500 to $2,800 in the coming months.
Spot silver rose 0.4% to $32.17 an ounce and has gained about 1.8% since the start of the week.
Platinum rose 1.1% to $1,001.79 and palladium rose 1.4% to $1,013.46.
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