Gold extended gains on Friday as the dollar fell against the yen after a report suggested that U.S. President Donald Trump would next take up trade issues with Japan, while investors feared a new round of Sino-U.S. tariffs could come at any moment.
Spot gold was up 0.1% at $1,200.88 U.S. early Friday morning, after it hit a near one-week high on Thursday at $1,206.98, and headed for a third straight session of gains.
U.S. gold futures rose 0.2% to $1,206.40 U.S. an ounce.
The dollar declined further against the yen following a media report on Thursday that Trump told a Wall Street Journal columnist he might take on trade issues with Japan.
Another big worry for investors was the end of a public consultation period over trade, after which Trump could impose tariffs on $200 billion more in Chinese imports.
China's commerce ministry warned that the country would retaliate against any new tariff measures.
Meanwhile, markets will be closely watching a U.S. employment report due later in the day for cues on the pace of interest rate hikes by the Federal Reserve.
The payrolls report is expected to show a robust rise of 191,000, in part as July was temporarily depressed by the closure of the Toys R Us chain that month.
Gold has tumbled more than 12% from a peak of $1,365.23 U.S. in April. Traders and analysts have opined that current levels have recently invoked a lot of physical buying in Asia.
Among other precious metals, spot silver rose 0.5% to $14.19 U.S. per ounce.
Platinum was steady at $791.40 U.S., while palladium fell 0.3& to $975.
