02.05.202509:48:00UTC+00Gold Recovers As Dollar Weakens Before US Jobs Data

Gold prices traded higher on Friday, after having suffered losses over the previous three sessions amid signs of easing trade tensions.

Spot gold jumped 0.8 percent to $3,262.69 per ounce in European trade but was down 1.5 percent for the week. U.S. gold futures were up 1.5 percent at $3,269.26.

The dollar was on the backfoot as the latest U.S. data pointed to an economic slowdown.

Economic data released on Thursday painted a sluggish picture, with U.S. manufacturing contracting for a second straight month in April and initial unemployment claims posting an unexpected increase last week.

That followed Wednesday's data showing the U.S. economy contracted for the first time in three years in the last quarter and hiring by private-sector employers slowed to the weakest pace in nine months in April.

Focus now shits to U.S. payrolls data due later in the day, with hiring seen slowing while the jobless rate is expected to hold steady.

Meanwhile, China said it was open for talks with the United States on tariffs, raising hopes of a de-escalation in a bitter trade war between the two largest economies in the world.