Gold Soars as Oil Prices Tumble, Nonfarm Payrolls Loom

Gold prices rose on Friday, putting them on track for their biggest weekly gain since January. The precious metal has been supported by weaker oil prices and hopes of peace in the Middle East, which have eased inflation concerns.

The US Labor Department's nonfarm payrolls report for July is due later today at 1230 GMT, but analysts believe that regardless of the outcome, gold will continue to rally. 'US$4,000 has proven to be a solid support level - and I suspect bulls are waiting for dips to take advantage of a much-needed correction higher towards US$4,600,' said Matt Simpson, a senior analyst at StoneX.

Crude oil prices were headed for a weekly loss, which is helping to reduce expectations of higher-for-longer interest rates. Gold is often seen as an inflation hedge, but elevated interest rates can weigh on its appeal due to the lack of yield it offers.