Gold rose in spot transactions by 0.67 percent to $1,832.26 per ounce, but it suffered its second weekly loss in a row, with a decrease of 0.84 percent.
US gold futures also rose by 0.8 percent to $1,847 per ounce.
Ten-year US Treasury bond yields fell from a 16-year peak, as well as the US dollar from its highest levels since November 2022, but they are heading to record the twelfth consecutive week of gains, which affected the attractiveness of gold.
Tai Wong, a New York-based independent metals trader, said the recovery in gold prices despite the strong jobs data indicates that selling pressures have exhausted and there is short covering.
Prices of the yellow metal fell as much as 0.5 percent earlier in the session, after the US Department of Labor report showed non-farm payrolls increased by 336,000 jobs in September on a monthly basis, exceeding expectations of 170,000 jobs, according to a Reuters poll of economists.
Traders expect about a 29 percent chance of another Fed rate hike this year, according to the CME Fedwatch tool.
Higher interest rates increase the opportunity cost of holding bullion.
“With the recent rise in bond yields and the dollar, it is difficult to build a bullish case for gold,” Ole Hansen, head of commodities strategy at Saxo Bank, said in a note.
He continued, saying: “But we maintain a cautiously bullish view on gold, as the timing of the new start to the rise depends largely on US economic data and we are waiting for the Federal Open Market Committee (the US Central Bank) to shift its focus from raising interest rates to lowering them.”
Regarding other precious metals, silver in spot transactions jumped 3.1 percent to $21.54 per ounce, platinum rose 2.6 percent to $876.73, and palladium increased 1.8 percent to $1,161.72. The three metals suffered weekly losses.
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