LONDON: Gold prices climbed on Friday, supported by safe-haven demand arising from the Middle East conflict, while spotlight shifted towards U.S. payrolls report to gauge the trajectory of the Federal Reserve's policy path.
Spot gold was up 0.3 per cent at US$2,662.72 per ounce, as of 0649 GMT, after climbing to an all-time high of US$2,685.42 on Sept. 26. Bullion has gained 0.2 for the week.
U.S. gold futures edged 0.2 per cent higher to US$2,682.90.
The dollar eased 0.2 per cent, pulling back from over a one-month high, making greenback-priced bullion less expensive for other currency holders.
Geopolitical tensions, particularly concerning Israel and Iran, are supporting gold prices and unless these risks subside, prices are likely to remain near record levels, said Ajay Kedia, director at Kedia Commodities, Mumbai.
The U.S. is discussing strikes on Iran's oil facilities as retaliation for Tehran's missile attack on Israel, President Joe Biden said, while Israel's military hit Beirut with new air strikes in its battle against Lebanese armed group Hezbollah.
Bullion is considered a safe investment during times of political and financial uncertainty, and thrives in a low-rate environment.
The U.S. nonfarm payroll data is due at 1230 GMT. New York Fed President John Williams and Chicago Fed President Austan are also scheduled to speak later in the day.
If the NFP report comes in strong, it will be positive for the dollar and then gold prices will see some profit-booking, Kedia added.
Traders see a 65 per cent chance of a 25-basis-point Fed rate cut in November, according to CME FedWatch Tool.
BMI said in a note it expects gold prices to trade within the range of US$2,500 to US$2,800 in the coming months.
Spot silver inched 0.1 per cent higher to US$32.08 per ounce, and has gained about 1.4 per cent so far this week.
Platinum climbed 1.1 per cent to US$1,001.47 and palladium advanced 1.01 per cent to US$1,008.71.