Gold rose on Friday and headed for its best week in three months, supported by growing expectations of a Federal Reserve rate cut this month, as attention turns to the US non-farm payrolls data due later in the day.
Spot gold was up 0.4% at $3,557.99 per ounce, as of 0500 GMT, hovering near an all-time high of $3,578.50 touched on Wednesday. Bullion has risen 3.2% so far this week.
US gold futures for December delivery gained 0.3% to $3,616.70.
"Gold is creeping higher today, with traders not willing to try and push the price too much higher until we see the non-farm payrolls print," KCM Trade Chief Market Analyst Tim Waterer said.
"Market dynamics remain in favor of gold with rate cuts likely on the way, Trump's attempts to shape the Fed into a more dovish body, and the Russia-Ukraine conflict not slowing down."
The number of Americans filing new applications for jobless benefits increased more than expected last week, consistent with softening labor market conditions.
Furthermore, the ADP National Employment Report showed US private payrolls increased less than expected in August.
Several Fed officials this week said labor market concerns continue to animate their belief that rate cuts lie ahead. Fed Governor Christopher Waller said he thinks the US central bank should be cutting at its next meeting, according to Reuters.
Traders are currently pricing in a near 100% chance of a 25-basis-point rate cut at the end of the two-day Fed policy meeting on September 17, according to CME Group's FedWatch tool.
Non-yielding gold typically performs well in a low-interest-rate environment.
Focus will also be on the US non-farm payrolls data, due at 1230 GMT, that could offer more clarity on the Fed's interest rate trajectory.
Elsewhere, spot silver rose 0.5% to $40.85 per ounce and was heading for its third straight weekly gain. Platinum gained 1.1% to $1,382.33 and palladium was flat at $1,127.01.
