Investing.com-- Gold prices rose in Asian trade on Friday, remaining in sight of recent record highs as traders favored safe havens amid uncertainty before key U.S. nonfarm payrolls data.

The yellow metal was set for strong weekly gains as a renewed trade war between the U.S. and China spurred haven demand, while weakness in the dollar also helped. 

Fears of renewed tensions in the Middle East, after U.S. President Donald Trump claimed that the U.S. would take over the Gaza strip, also fueled some haven demand for gold. 

Spot gold rose 0.2% to $2,862.67 an ounce, while gold futures rose 0.3% to $2,884.81 an ounce by 00:58 ET (05:58 GMT). Spot prices were up 2.4% this week. 

Citi and UBS analysts hiked their gold price forecasts for 2025, stating that the yellow metal was likely to extend its bull market through the rest of the year. Citi sees gold hitting $3,000 an ounce in the short-term, while UBS expects $3,000 an ounce by end-2025.

Gold upbeat ahead of nonfarm payrolls data 

Spot prices remained close to a record high of $2,882.35 an ounce, as weakness in the dollar underpinned the yellow metal.

But the dollar steadied on Friday, with focus turning to key nonfarm payrolls data due later in the day. 

Traders were bracing for a strong payrolls reading, especially amid signs of continued resilience in the labor market. A strong labor market gives the Federal Reserve less impetus to cut interest rates.

The central bank recently signaled that it had no plans to cut interest rates quickly, amid uncertainty over sticky inflation and Trump’s policies.