Gold prices are showing modest gains on Friday, recovering slightly from a multi-week high seen Thursday, but are struggling to make significant advances as investors await the crucial US Nonfarm Payrolls (NFP) report. The precious metal is facing headwinds from a stronger US Dollar, driven by repositioning trades ahead of the NFP, and renewed optimism surrounding potential US-China trade talks. However, lingering geopolitical risks, particularly the Russia-Ukraine war and Middle East conflicts, along with expectations of further Federal Reserve interest rate cuts in 2025, are providing some underlying support for gold. The upcoming NFP data, which is expected to show a cooling US labor market, will be key in shaping the Federal Reserve's policy outlook and consequently influencing gold's trajectory.

Crude oil prices are on track for another weekly gain despite a recent dip, driven primarily by renewed optimism surrounding US-China trade talks following positive statements from President Trump, and persistent supply uncertainties in Venezuela and Iran. Brent crude and West Texas Intermediate saw price increases bolstered by the likelihood of further US sanctions on Venezuelan oil and the threat of Israeli strikes on Iranian energy infrastructure, as noted by BMI analysts. However, these upside risks are balanced by expectations of weaker oil demand for 2025—a decline projected by the International Energy Agency—and increased production from OPEC+ and non-OPEC producers in the coming quarters. This bearish outlook is further supported by Saudi Arabia's decision to cut oil prices for Asian buyers, although the smaller-than-expected cut suggests some underlying resilience in demand within the largest importing market.