Gold heads for modest weekly gain as investors await US payrolls data

Meanwhile, U.S. Vice President JD Vance said the fighting between Washington and Tehran was not a war and declined to provide a timeline for when the conflict would be over, underscoring the challenge the Trump administration faces as the hostilities enter their seventh month and mid-term elections loom.

Among other metals, spot silver XAG= fell 0.5% to $66.59 per ounce. Platinum XPT= lost 1.2% to $1,803.53 and palladium XPD= declined nearly 1.3% to $1,403.03, with both metals on track for slight weekly declines.

Gold prices were steady on Friday and poised for a modest weekly gain, as traders’ attention turned to key U.S. payrolls data for clues on the Federal Reserve’s next interest rate decision.

Spot gold XAU= held its ground at $4,469.26 per ounce, as of 0633 GMT. Prices jumped 2% on Thursday as traders scaled back expectations for a September rate hike after Fed Governor Christopher Waller said he would support leaving rates unchanged if data continued to show inflation pressures moderating.

U.S. gold futures GCcv1 for December delivery fell 0.5% to $4,515.70.

Traders are pricing in an about 50% chance of a Fed rate hike later this month, according to the CME FedWatch Tool.

The U.S. nonfarm payrolls report is due at 1230 GMT.

"Weak figures and a rise in unemployment could weaken the case for a rate hike. In this case, gold could recover. However, the metal could remain exposed to changing sentiment, with inflation data releases coming next week," said Ross Maxwell, global strategy operations lead, VT Markets.