Gold prices were largely unchanged during Asian trading on Friday as investors remained cautious ahead of the highly anticipated U.S. jobs data, while ongoing geopolitical tensions continued to underpin bullion’s strength for the week. Market participants avoided aggressive positions as they assessed the potential impact of U.S. labor market data on the Federal Reserve’s future policy direction.
Spot gold traded nearly flat at $4,474.20 an ounce in early Asian hours, while U.S. gold futures edged down 0.3% to $4,483.60. Despite the subdued session, gold was on track to post a weekly gain of more than 3%, following a sharp rally earlier in the week. The surge came after heightened U.S.-Venezuela tensions, including a U.S. military operation that resulted in the capture of Venezuelan President Nicolas Maduro, which boosted demand for safe-haven assets.
The upside in gold prices was partially capped by a stronger U.S. dollar. The U.S. Dollar Index climbed to a one-month high, making gold more expensive for holders of other currencies. A firm dollar typically weighs on gold prices, even as broader macroeconomic factors remain supportive.
Investor focus was firmly on the upcoming U.S. nonfarm payrolls report, a key indicator of labor market health. The data is expected to offer fresh insight into inflation trends and the Federal Reserve’s interest rate outlook. Traders are increasingly pricing in two additional U.S. interest rate cuts in 2026, following the Fed’s rate reduction in December. Lower interest rates tend to favor gold, as the metal becomes more attractive in a low-yield environment.
Geopolitical uncertainty continued to provide underlying support for bullion. While the U.S. Senate moved to advance measures aimed at limiting further military action in Venezuela, President Donald Trump indicated that U.S. oversight of the situation could extend for years, reinforcing safe-haven demand.
Other metal markets also posted gains. Silver rose 0.4% to $77.23 per ounce, platinum advanced 0.4% to $2,275.60, and palladium surged 5% to $1,872.50. Copper prices strengthened as well, with London Metal Exchange futures up 1.3% to $12,867.20 a ton and U.S. copper futures gaining 1% to $5.86 a pound.


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