Gold prices rose on Friday, shrugging off a firmer dollar and surging U.S. bond yields amid expectations for higher inflation, and continued rate hikes from the Federal Reserve in the coming months.
Spot gold rose 0.43 percent to $1,202.36 an ounce while U.S. gold futures were up 0.35 percent at $1,205.80.
The dollar edged toward a six-week high as investors await the U.S. government's September payroll report scheduled for release later in the day.
U.S. employment is expected to jump by about 185,000 jobs in September after increasing by 201,000 jobs in August. The jobless rate is expected to dip to 3.8 percent from 3.9 percent.
The monthly jobs data is likely to overshadow a separate report on the U.S. trade deficit as well as remarks by Federal Reserve officials.
Traders also watched developments in Italy after Deputy Prime Minister Matteo Salvini accused top European Commissioners of wrecking Europe.
"We are trying to change this Europe from the inside and we hope that the May European elections will give us a hand," Salvini reportedly said.
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