Gold prices extend gains after jobs data

LONDON, May 08 (Reuters): Gold extended gains on Friday following a stronger-than-expected jobs report, with prices also heading for a weekly rise as optimism over a potential end to the Iran conflict helped ease concerns about inflation and elevated interest rates.
Spot gold was up 0.8 per cent at $4,723.28 per ounce, as of 1322 GMT. Bullion has gained 2.4 per cent so far this week.
US gold futures rose 0.5 per cent to $4,733.00.
Data showed that US employment increased more than expected in April while the unemployment rate held steady at 4.3 per cent, pointing to labor market resilience.
"Traditionally, we would think that a stronger-than-expected jobs number would strengthen the dollar and apply some pressure to gold. Yet, we did not really see that happen today," said David Meger, director of metals trading at High Ridge Futures.
"At this point, gold is trading like a risk asset rather than a safe-haven. The rebound in gold is tied to the prospects of de-escalation in Iran, with energy prices coming down, we're seeing the prospects for Fed rate cuts increase down the road."
Gold, typically seen as a safe haven during periods of global turmoil, faces pressure from rising interest rates due to its non-yielding nature.
According to the CME FedWatch tool, the market now sees about a 14 per cent chance of ?a rate hike this year, down from around 22 per cent the previous day.
US and Iranian forces clashed in the Gulf and the United Arab Emirates came under renewed attack, but President Donald Trump said a ceasefire was still holding despite the flare-up.
Meanwhile, gold demand in India was muted this week, as a price recovery prompted potential buyers to postpone purchases, while China premiums remained steady on safe-haven demand.
Spot silver rose 3.1 per cent to $80.88 an ounce, platinum gained 0.2 per cent to $2,026.80, both headed for a weekly gain.
Palladium was down 0.3 per cent at $1,476.18 but down nearly 3 per cent for the week.