(RTTNews) – Gold traded above $4,700 an ounce on Friday as the dollar index struggled around the 98 mark ahead of the US jobs report due later in the day and the CPI report due next Tuesday.
Additionally, the US Senate will vote on May 11 to block the nomination of Kevin Maxwell Warsh as the 17th Chairman of the Federal Reserve.
Spot gold jumped 0.7 percent to $4,721.02 an ounce, while US gold futures were up 0.4 percent at $4,727.60.
Traders were waiting for the release of the US non-farm payrolls report later in the day for directional cues after private sector job growth in April.
Analysts expect an increase of 62,000 jobs this month, down from 178,000 in March, while the unemployment rate is seen holding steady at 4.3 percent.
On the geopolitical front, the situation in the Middle East remains uncertain. Iran created a new agency to formalize its control over the Strait of Hormuz and activated its air defense systems, raising fears of a wider military crisis in the region.
The US and Iran exchanged fire in the Strait of Hormuz and accused each other of attacking in the most intense confrontation since the fragile US-Iran armistice took effect on April 7.
The US military said it is “positioned and ready to protect US forces” after preventing unprovoked Iranian attacks on three Navy ships.
US President Donald Trump insisted the ceasefire would remain in effect, but warned of harsh military action if the agreement was not signed quickly.
Emphasizing that the talks are “going very well”, Trump said that the Iranian aggressors have suffered great losses and that “if they don’t sign their agreement, drastic military action will be taken very soon!”
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