Gold Struggles Ahead of US NFP Report Amid Strong USD

Gold (XAU/USD) struggled during the Asian session on Friday, despite limited downside due to traders' cautious approach before the US Nonfarm Payrolls (NFP) report. The report is expected to show a modest 90K jobs added in September, down from the previous month's reading of 162K. Meanwhile, the Unemployment Rate is seen holding steady at 4.1%. Traders are closely watching these figures for cues about the Federal Reserve's future policy path.

The strong US Dollar (USD) has been a headwind for gold, which tends to move inversely with the USD. The Pentagon's potential deployment of an additional aircraft carrier and 10,000 sailors and Marines to the Persian Gulf adds to the geopolitical risk premium, supporting the USD. This may limit any near-term upside in gold.