Belief in the U.S. monetary policy remaining loose enhanced demand for bullion, combined with the U.S. Federal Reserve committing to preserve interest rates at record lows throughout this year and most of next year, were cited as drivers of the yellowish metal's climb, which is approaching 13 percent thus far this year. The U.S. Department of Labor is preparing to release payroll data on Friday, which one analyst said could push the price of gold even higher.
"Any better-than-expected jobs figure today will further add to risk appetite, which may push gold above $1,784," senior analyst Pradeep Unni with Richcomm Global Services told Reuters on Friday. "Disappointment in jobs data may drag gold below $1,730, but an extended sell-off is not envisaged."
At 7:46 a.m. on Friday, gold futures fell 0.10 percent, a $1.80 drop to $1,757.50 per troy ounce.
Healthy reports about strong manufacturing also contributed to the yellowish metal's climb in value, according to The Economic Times.