Gold prices are set to record their strongest weekly performance since January, with spot gold rising 0.4% to $4,254.11 per ounce on Friday.
The precious metal has gained more than 5% over the past five trading days, driven by a confluence of softer energy prices and growing investor appetite for safe-haven assets ahead of critical US labor market data.
Earlier this week, gold climbed more than 2% as investors reacted to disappointing US nonfarm payrolls data, which signaled a cooling economy and prompted traders to scale back bets on aggressive interest rate hikes.
U.S. gold futures followed suit, climbing 0.3% to $4,312.00 per ounce.
The rally marks a continuation of the momentum that pushed gold to a one-month high earlier in the week, as traders position themselves ahead of the highly anticipated US nonfarm payrolls report.
Market participants are closely watching for signs of further economic cooling, which would reinforce expectations for accommodative monetary policy and support further gains in bullion.
The recent surge in gold prices has been fueled by shifting geopolitical dynamics and macroeconomic data that have converged to support the metal.
Earlier this week, gold climbed more than 2% as investors reacted to disappointing US nonfarm payrolls data, which signaled a cooling economy and prompted traders to scale back bets on aggressive interest rate hikes.