Gold prices were little changed in Asian trading on Friday as investors stayed on the sidelines ahead of the release of key US labour market data later in the day, while the metal remained on course for solid weekly gains supported by geopolitical risk.
Spot gold hovered near $4,474 an ounce in early trade, while US gold futures edged slightly lower. Despite the pause, bullion was set to post a weekly advance of more than 3%, following a sharp rally at the start of the week triggered by heightened tensions between the United States and Venezuela, including the capture of President Nicolas Maduro.
Dollar strength caps gains before data release
The upside in gold was tempered by a stronger US dollar, which recently touched a one-month high. A firmer dollar typically weighs on the metal by making it more expensive for buyers using other currencies.
Market participants are now focused on the US nonfarm payrolls report, which is expected to offer fresh insight into the health of the labour market and help shape expectations for the Federal Reserve’s next policy moves. The data could influence both the timing and scale of any future interest rate cuts, keeping traders cautious ahead of the release.
Traders are increasingly pricing in the possibility of two additional US rate cuts in 2026, following the Federal Reserve’s interest rate reduction in December. Lower borrowing costs generally support gold, which does not generate yield and tends to perform better when interest rates decline.
Geopolitics underpin safe-haven demand
Ongoing tensions between Washington and Caracas have continued to underpin demand for safe-haven assets. While prices consolidated after the early-week surge, the prospect of a prolonged geopolitical standoff remains a supportive factor for bullion.
Political developments in the United States also stayed in focus, after the US Senate voted to advance measures aimed at limiting further military action in Venezuela. President Donald Trump, however, said US oversight of the situation could extend for years, highlighting the risk of sustained uncertainty that may continue to benefit gold.
Broader metals complex advances
Elsewhere in metals markets, prices were mostly higher on Friday. Silver and platinum both edged up, while palladium surged sharply. Copper futures also advanced on both the London Metal Exchange and in the United States, pointing to broader strength across the metals complex.
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