Gold prices were little changed on Friday as investors awaited September U.S. employment data, while the dollar remained near a 17-month high and Treasury yields stayed elevated.
Spot gold rose 0.1% to $4,179.65 an ounce by 06:47 GMT, while U.S. gold futures gained 0.2% to $4,210.15.
Gold was on course for a second consecutive weekly decline, with prices down 2.5% so far during the week.
The U.S. Dollar Index declined 0.2% on Friday but remained close to the 17-month high reached during the previous session. The index was heading for a weekly increase of around 1%. A stronger dollar can increase the cost of dollar-denominated gold for buyers using other currencies.
U.S. Treasury yields also remained elevated. The benchmark 10-year yield briefly reached 5.344% on Thursday, its highest level since 2002, before easing to around 5.25% on Friday. Higher bond yields increase the relative opportunity cost of holding assets such as gold that do not generate interest.
U.S. Payrolls Data in Focus
Markets are awaiting the September U.S. nonfarm payrolls report, due later on Friday, for further information on labour-market conditions and the potential direction of Federal Reserve monetary policy.
Economists expect U.S. employers to have added approximately 90,000 jobs during September, compared with 162,000 in August. The unemployment rate is forecast to remain unchanged at 4.1%.
The Federal Reserve raised its benchmark interest rate by 25 basis points last month to a range of 3.75% to 4.00%, marking its first increase in three years.
Expectations for another increase in October have since declined following lower inflation readings. Markets were pricing approximately a 26% probability of an October rate increase, compared with 69% a week earlier, according to the supplied information.
Gold received some support earlier in the week as lower-than-expected U.S. inflation data reduced expectations for further near-term monetary tightening.
Oil prices and government bond yields also remain in focus. Continued increases in energy prices could contribute to inflationary pressures, while higher yields can affect demand for non-interest-bearing assets.
Silver, Platinum and Copper Edge Higher
Other precious and industrial metals recorded modest gains during Asian trading.
Silver rose 0.2% to $61.05 an ounce, while platinum increased 0.4% to $1,733.60 an ounce.
Benchmark copper futures on the London Metal Exchange gained 0.2% to $14,298.33 a tonne, while U.S. copper futures advanced 0.4% to $5.57 a pound.