Gold looked on course to hold onto gains for the week as fears over escalations in the Middle East persisted, despite US rate cut expectations being cut.
As of Friday, the yellow metal sat at US$2,650, leaving it slightly below but little changed since Monday.
Slashed expectations for another 50 basis point rate cut in the US on Friday, after a strong set of non-farm payroll data saw more jobs added in the US economy than expected last month, had weighed on gold prices.
However, fears of a strike by Israel against Iran after the latter’s missile attack earlier in the week appeared to curb the chance of any major decline.
This comes after gold peaked at above US$2,680 in late September as expectations of further aggressive rate cuts by the Fed coincided with investors looking to safe havens on the back of the latest tensions in the Middle East.
DHF Capital chief executive Bas Kooijman noted a “milder rhythm” of Fed rate cuts may now leave gold with “less support”.
However, “geopolitical” factors remain, Kooijman added, alongside the prospect of further central bank buying.