Bullion posted a small gain in Thursday trading despite the latest US jobs data showing signs of resilience, reinforcing expectations that the Federal Reserve (Fed) will cut interest rates by the end of the year.
At 9.30 am, gold prices were at $4,201, down 0.18% compared to the opening of the Asian session on Friday.
Market sentiment remained mixed after US economic data showed the labor market was slowing. The Challenger Job Cuts report recorded the highest number of layoffs since 2022, while weekly jobless claims fell to a low of 189,000.
Rate cut expectations remained strong with a probability of around 85% for a quarter-point cut in interest rates at the Fed meeting next week.
The confidence was also boosted by the weaker-than-expected ADP National Employment Change report, after private companies were reported to have cut 32,000 jobs last month.
A Reuters poll also showed most economists expected a rate cut at the December meeting, providing support to gold prices which typically benefit in a low-interest rate environment.
Next, market attention will be on the release of the Fed's preferred inflation gauge, the Core Personal Consumption Expenditures (Core PCE) Price Index for September.
