Shafaq News/ Gold prices climbed on Friday, supported by safe-haven demand arising from the Middle East conflict, while spotlight shifted towards U.S. payrolls report to gauge the trajectory of the Federal Reserve's policy path.

Spot gold was up 0.3% at $2,662.72 per ounce, as of 0649 GMT, after climbing to an all-time high of $2,685.42 on Sept. 26. Bullion has gained 0.2 for the week.

U.S. gold futures edged 0.2% higher to $2,682.90.

A line chart titled "Spot gold price in USD per oz" that tracks the metric over time.

A line chart titled "Spot gold price in USD per oz" that tracks the metric over time.

The dollar (.DXY), opens new tab eased 0.2%, pulling back from over a one-month high, making greenback-priced bullion less expensive for other currency holders.

Geopolitical tensions, particularly concerning Israel and Iran, are supporting gold prices and unless these risks subside, prices are likely to remain near record levels, said Ajay Kedia, director at Kedia Commodities, Mumbai.

The U.S. is discussing strikes on Iran's oil facilities as retaliation for Tehran's missile attack on Israel, President Joe Biden said, while Israel's military hit Beirut with new air strikes in its battle against Lebanese armed group Hezbollah.

Bullion is considered a safe investment during times of political and financial uncertainty, and thrives in a low-rate environment.

The U.S. nonfarm payroll data is due at 1230 GMT. New York Fed President John Williams and Chicago Fed President Austan are also scheduled to speak later in the day.

If the NFP report comes in strong, it will be positive for the dollar and then gold prices will see some profit-booking, Kedia added.

U.S. stocks finished lower on Thursday as investors kept a watchful eye on the growing conflict in the Middle East.

Traders see a 65% chance of a 25-basis-point Fed rate cut in November, according to CME FedWatch Tool., opens new tab

BMI said in a note it expects gold prices to trade within the range of $2,500 to $2,800 in the coming months.

Spot silver inched 0.1% higher to $32.08 per ounce, and has gained about 1.4% so far this week.

Platinum climbed 1.1% to $1,001.47 and palladium advanced 1.01% to $1,008.71.

(Reuters)