The strengthening of the US dollar suppresses gold, as the market awaits clues from non-farm payrolls and the Federal Reserve.

1. During the Asian session on Friday, spot gold experienced some selling pressure but the decline was limited. After touching 4133.58 at the opening, it rebounded and is currently trading around $4,184 per ounce, up about 0.15%. Traders tend to wait for the release of key US employment data before making new directional bets. The market expects that the US non-farm payrolls report for September will show an increase of 90,000 jobs, lower than the previous month’s 162,000; the unemployment rate is expected to remain at 4.1%. Meanwhile, average hourly earnings, which reflect annual wage inflation, are also in focus to judge the Fed's future policy path, especially as bets on a rate hike in October have cooled. These factors will affect the movement of the US dollar and provide new momentum for non-interest-bearing gold.2. Several influential Federal Open Market Committee members have recently stated that after raising rates by 25 basis points as expected at the September meeting, they see no urgent need for further hikes in the near term. Meanwhile, the Institute for Supply Management reported on Thursday that US manufacturing activity expanded for the ninth consecutive month in September, with survey details showing that raw material prices rose for the 24th straight month. This, combined with inflation concerns driven by energy price volatility, supports the prospect of further Fed tightening and limits the decline in US bond yields from multi-year highs reached the night before. In addition, the US-Iran standoff is keeping the US dollar near its highest levels since April 2025.3. The Wall Street Journal reported that the Pentagon may soon deploy a third aircraft carrier strike group and 10,000 sailors and marines to the Persian Gulf. Other reports say that Iran's Strait of Hormuz Authority has stated that several oil tankers have been attacked in the Strait of Hormuz recently. US President Trump also stated on Wednesday that he will soon decide whether to “blow up Iran,” and said the war will end in some way soon. This has kept geopolitical risk premiums elevated and supported strong safe-haven demand for the US dollar, which may continue to put pressure on gold.4. However, the lack of follow-up selling in gold also reminds bears to remain cautious before betting on a major decline.