As of Friday, gold prices (XAU/USD), after declining during the Asian session, have returned to Thursday's trading range. Quotes fell below the $4050 level amid a moderate strengthening of the US dollar. The US Dollar Index (DXY), which measures the value of the US currency against a basket of other currencies, continued to recover after reaching its lowest level since late September on Thursday. This put pressure on gold. At the same time, further declines have been limited as traders prefer to wait for the release of key US labor market data before opening large positions in either direction.

The October US Nonfarm Payrolls (NFP) report is expected to show that the economy added 65 thousand jobs, up from 29 thousand in the previous month. The unemployment rate is expected to remain at 4.2%. Investors will also monitor changes in average hourly earnings, as wage growth could have a significant impact on expectations regarding the Federal Reserve's future policy decisions. Overall, the release of these key macroeconomic indicators could increase volatility in financial markets and affect demand for the US dollar, in turn providing additional momentum for gold price movements.

Meanwhile, the Democratic Party's victory in the US midterm elections has heightened concerns that the development of the artificial intelligence sector could slow. Against this backdrop, Wall Street prices fell sharply on Thursday, while demand for traditional safe-haven assets, including US Treasury bonds, increased. However, the subsequent substantial rise in oil prices has renewed inflation concerns. In addition, traders continue to assign a probability of approximately 70% to a Fed rate hike at its December meeting. This limits the potential for further declines in US Treasury yields following their midweek drop and supports the dollar.

The geopolitical risk premium also remains in place amid uncertainty over US President Donald Trump's next steps. On Thursday, he stated that the United States might have to "destroy the rest of Iran," adding that it would soon become clear whether he would take any action. Disagreements between the United States and Iran over Tehran's nuclear program and the situation in the Strait of Hormuz also remain unresolved. These factors support the dollar as a safe-haven asset and, consequently, put pressure on gold. Despite this, the precious metal appears likely to end the week higher for the first time in three weeks and is holding firmly above the psychologically important $4000 level.From a technical perspective, XAU/USD maintains a positive short-term bias, trading above the 20-day SMA. However, an intraday decline below the 20-day SMA should prompt caution among bulls. Oscillators remain in negative territory, confirming the advantage held by bears. The nearest resistance is located just above the round $4100 level. A sustained move above this mark would create conditions for a test of yesterday's high near $4155. Support is provided by the convergence of the 9-day and 14-day EMAs. The round $4000 level offers further support below.

The table below shows the percentage change in the US dollar against the specified major currencies today. The dollar has recorded its largest gain against the New Zealand dollar.