Gold prices advanced during Friday's Asian session after retreating from seven-week highs a day earlier, as investors looked ahead to the release of the closely watched United States nonfarm payrolls report.
By 4:15 pm AEST (6:15 am GMT), spot gold was up 1.1% at US$4,286.29 an ounce, putting the precious metal on track for a weekly gain of 5.8%.
Investors also monitored renewed uncertainty surrounding the Strait of Hormuz, with doubts emerging over the prospects of a U.S.-Iran peace agreement.
Iran's semi-official Fars news agency reported on Thursday, citing a lawmaker, that a parliamentary committee is reviewing draft legislation that would prohibit U.S., Israeli and other vessels deemed hostile from transiting the Strait of Hormuz.
The proposed legislation would also impose fines of up to 20% of a ship's cargo value for breaches of the planned restrictions.
The developments helped lift oil prices, reviving concerns about inflation and reinforcing expectations that the Federal Reserve could raise interest rates in September.
Attention has now shifted to the U.S. labour market report, with traders awaiting the latest nonfarm payrolls figures for further guidance on the Federal Reserve's policy outlook. The data is also expected to influence the direction of the U.S. dollar and Treasury yields.
Economists expect the U.S. economy to have added 80,000 jobs in July, following an increase of 57,000 in June.
The unemployment rate is forecast to remain unchanged at 4.2%.
