Gold Bulls on High Alert Ahead of Key US Jobs Report

Gold prices have experienced a rebound in Asia on Friday, following a sharp pullback from seven-week highs of $4,304 reached the day before. Despite this, gold bulls remain cautious ahead of the highly anticipated US Nonfarm Payrolls (NFP) data release.

The US-Iran tensions have contributed to a revival of inflation worries and interest rate hike bets in September. This has led to a resurgence in the appeal of the US dollar as a safe-haven asset, causing gold prices to decline. The Greenback is holding onto its overnight gains, capping gold's latest uptick.

However, gold remains on track to book its best week since January. Traders are eagerly awaiting the monthly US labor market report, which includes the critical NFP reading, for fresh hints on the Fed's outlook on rates and their impact on the dollar and US Treasury bond yields.