Gold prices rose for a third consecutive session on Friday and were on track to close the week higher, following an extended correction, as a softer dollar provided support.
At the same time, weaker-than-expected nonfarm payrolls data tempered concerns over a higher-for-longer interest rate path, with markets now pricing in only one interest rate increase, down from two previously.
Less hawkish monetary policy expectations could continue to weigh on bond yields and support the metal.
Looking ahead, market participants will be closely monitoring the next steps in peace talks between the United States and Iran.
Hope for progress could place additional selling pressure on oil prices and ease inflation concerns, which could benefit gold.
However, any hurdles in the process could push gold to the downside. Additionally, June’s services PMI, due next week, and any further Fed commentary will determine whether markets keep unwinding rate-hike bets or revert to the hawkish repricing that dragged gold to its recent low.
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