Gold prices rise in anticipation of US labor market data

Gold prices rose moderately on Friday after a sharp fall in the previous session. Investors are waiting for the release of data on the US labor market, which may affect the future policy of the Federal Reserve System (Fed), Report informs.

Spot gold price rose 0.1% to $1,834.79 an ounce after dropping 1.1% on Thursday. Over the past week, gold prices rose by about 0.6%.

Gold futures on the COMEX traded on a flat line at $1,839.70 per ounce.

"Investors in the gold market are somewhat wary ahead of the release of the report on the US labor market. The data may have a significant impact on government bond yields and dollar dynamics, which in turn will affect gold quotes," said Craig Erlam, chief market analyst at OANDA.

US non-agriculture payroll data will be released at 13:30 GMT. Economists polled by Reuters believe that the number of jobs in December increased by 200,000 after rising by 263,000 in November.

If gold prices "fall below $1,818-$1,820, this could mean a correction after the rapid rally that has been going on since early November," Erlam said.

Meanwhile, the dollar index increased 0.4%, putting pressure on gold quotes denominated in US currency.