Gold inched lower on Friday as mild profit-taking set in after recent rallies and as investors awaited U.S. jobs data for direction on interest rates, but safe-haven demand kept prices near nine-and-a-half-month highs as tensions over North Korea lingered.
Spot gold slipped 0.2% to $1,318.91 U.S. per ounce, not far from the more-than-nine-month high of 1,325.94 U.S. hit on Tuesday, and was on track for a weekly gain of more than 2%.
U.S. gold futures were up 0.1% to $1,323.90 U.S. per ounce.
Also, the U.S. non-farm payrolls report was due out Friday morning, ahead of the U.S. Federal Reserve's next policy meeting and may influence the timing of the Federal Reserve's rate hike.
Gold is highly exposed to interest rates, particularly in the U.S., as higher rates lift the opportunity cost of holding non-yielding assets and boost the dollar, in which gold is priced.
South Korean and Japanese jets joined exercises with two supersonic U.S. B-1B bombers above and near the Korean peninsula on Thursday, two days after North Korea sharply raised tension by firing a missile over Japan.
Geopolitical risks can boost demand for safe-haven assets such as gold.
Silver eased 0.2% to $17.54 U.S. per ounce.
Platinum rose 0.3% to $998.20 U.S. per ounce, while palladium edged up 0.4% to $935.97 U.S.
