Gold Prices Slide Amid Strong Dollar and Higher Yields

Gold prices took another hit on Friday, dropping by 0.6% to $4,154.78 per ounce as investors awaited the release of key US payrolls data for clues on the Federal Reserve's policy path.

The decline marked a second consecutive weekly loss for gold, with spot prices down more than 3% so far this week. US gold futures also fell by 0.4% to $4,184.00.

Market participants were watching interest rate expectations and geopolitical developments in the Middle East, particularly in Iran where officials are preparing a broader response if the United States resumes large-scale military attacks.

The upcoming nonfarm payroll data is seen as critical for determining rate expectations, with some analysts suggesting that a hot report could increase the chances of rate hikes from the Fed. This would likely weigh on gold prices further.