Gold Treads Water Ahead of US Jobs Data, Rate Hike Bets

Gold prices steadied at $4,477 an ounce on Friday as investors waited for US payrolls data that could impact expectations for the Federal Reserve's September meeting.

The metal had jumped about 2% on Thursday after Fed Governor Christopher Waller signaled he could support keeping rates unchanged if incoming inflation data continued to show progress.

Friday's jobs report is crucial as the market has become sensitive to small shifts in rate expectations, with Fed funds futures implying a roughly 50% chance of a September rate increase.

Economists expect nonfarm payrolls to rise by around 56,000 in August, while unemployment is forecast to remain at 4.1%.