Gold prices are seen stabilizing around $4,700 at the end of the week as investors await the important US NFP jobs report for April to be published tonight.
At 9.30 am, gold prices were trading at $4,713, up 0.59% since it opened early Friday in Asian trading.
The market is now focused on the US jobs report (NFP) for April, which is expected to be an important indicator of the direction of the Federal Reserve's (Fed) monetary policy.
Economists expect 62,000 new jobs to be created, while the unemployment rate is forecast to remain stable at 4.3%.
Stronger-than-expected labor data has the potential to strengthen the value of the US Dollar (USD), thus putting pressure on the prices of commodities traded in USD denominations in the near term.
The development could also affect market expectations for the Fed's interest rate decision at the upcoming meeting.
At the same time, market sentiment was also influenced by geopolitical developments in the Middle East as confidence in the potential for a peace deal between the United States and Iran caused crude oil prices to fall sharply.
The drop in oil prices also helped ease concerns about global inflationary pressures.
The administration of US President Donald Trump is now reportedly awaiting an official Iranian response to a proposal to reopen the Strait of Hormuz and end the ongoing conflict.
However, Iranian leaders have yet to give any clear indication as to whether they are willing to accept the terms of the deal.
Previously, Tehran was seen to be sticking to its stance on its nuclear program and showed no signs of halting uranium enrichment activities.
