US Dollar Strengthens Gold Prices Fall Ahead of Key Payrolls Data

Gold prices fell on Friday due to a firmer US dollar and elevated Treasury yields, putting them on track for a second straight weekly decline.

The spot price of gold dropped by 0.6% to $4,154.78 per ounce, while US gold futures lost 0.4% to $4,184.00.

Market participants are closely watching the upcoming US nonfarm payroll data for clues on the Federal Reserve's policy path.

Kyle Rodda, a senior financial market analyst at Capital.com, said 'US nonfarm payroll data will be critical for rate expectations. If it comes in hot, it may increase the chances of rate hikes from the Fed.'

The Fed policymakers have expressed caution about raising interest rates, with some staking out an unusually clear case for taking more data before deciding.