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The gold price was relatively flat during Asian trading hours on Friday as the market awaits the US blockbuster non-farms payroll data later in the day.

Spot gold was last at $1,260.20-1,260.60 per ounce, up $0.50 fr om Thursday’s close. Trading ranged at $1,256-1,262.20 so far.

There is significant upward momentum in the gold market and "it would take a markedly positive jobs number to seriously dent the rally", HSBC analyst James Steel wrote in a note.

“Friday’s non-farm payrolls and their impact on Fed rate hike expectations will be critical for determining whether gold gains further momentum from here,” said Credit Suisse in a Friday report.

“Investor sentiment is currently supportive given the continued inflows into ETFs, but the bullish positioning leaves gold vulnerable if US macro data is positive.”

A positive report could further fuel bets that interest-rate rises are on the horizon. Expectations of the US Federal Reserve resuming its interest rate hike have increased as recession fears retreat amid stabilising oil prices and better-than-expected US data.

Majority of market participants now see the next Fed rate hike happening in November this year, compared to in early-February wh ere most do not see a rate hike happening this year at all, according to the CME Group FedWatch.

Reference: Fast Market, Reuters