Gold prices held firm near three-week highs on Friday, extending a two-day rally amid escalating geopolitical tensions.
By 3:45 pm AEDT (4:45 pm GMT) spot gold was up by $4.20, or 0.2%, to US$2,662.43 per ounce.
The demand for gold surged earlier this week amid geopolitical conflicts, including Israeli airstrikes in Gaza and increased U.S.-Iran tensions as reports of potential U.S. military options for Iran heightened market caution.
Additionally, Russia's drone strikes on Kyiv further bolstered safe-haven flows.
Investors also digested robust U.S. job market data, with initial jobless claims hitting an eight-month low of 211,000 and coming in under the 222,000 forecast.
While protectionist policies under President-elect Donald Trump have raised concerns over U.S.-China trade tensions, his inflationary policy expectations might keep the Federal Reserve cautious on rate cuts, tempering gold's rally.
Traders now await the U.S. ISM Manufacturing PMI data later in Friday's session for further cues.
