Gold prices rebounded as Middle East tensions spurred safe-haven buying, with investors also eyeing the upcoming US jobs report for February.

SINGAPORE: Gold prices rose on Friday, recovering from a sharp drop in the previous session. The rebound was driven by heightened geopolitical uncertainty as the Middle East conflict widened.

Spot gold was up 0.8% at $5,117.27 per ounce by the Asia close. The metal has lost roughly 3% this week, set to snap a four-week winning streak.

US gold futures for April delivery gained 1% to $5,126.70. The US dollar weakened by 0.3%, making bullion cheaper for holders of other currencies.

“Geopolitical risks are still not subsiding,” said Kelvin Wong, a senior market analyst at OANDA. He noted a risk of escalation following recent statements from Iran, which is supporting the gold price.

On the sixth day of the war, Iran launched attacks on Israel, the United Arab Emirates and Qatar. US defence officials stated the US has enough munitions to continue its bombardment indefinitely.

The US-Israeli military campaign against Iran has struck targets across the country and triggered Iranian retaliation. Bullion, a traditional safe-haven asset, has risen about 18% so far this year.

Wong said gold prices would be volatile in the near term with key support at $5,040 and resistance at $5,280. Prices could rise to $5,448 if that resistance is broken, he added.

Demand for physical gold eased in India this week as volatile prices deterred buyers. Premiums in China held firm on a pickup in investment demand.

CME Group cut the initial margin on its COMEX 100 gold futures to 7% from 9% on Thursday. It also reduced the margin on its COMEX 5,000 silver futures to 14% from 18%.

Investors now await the US employment report for February, due later in the day. Spot silver rose 2.4% to $84.12 per ounce.

Spot platinum gained nearly 1.4% to $2,150.70. Palladium climbed 2% to $1,662.72.

 The Sun Malaysia