Gold dipped slightly but stayed close to late New York levels in Asia on Friday ahead of US jobs data and a threatened strike in South Africa, the world's largest producer of the precious metal. Traders said market sentiment remained firm, however, and the market had the potential to top $440 an ounce next week, a key chart level.
Spot gold was quoted at $437.40/$437.90 per ounce, compared with the late US level of $438.00/$438.80 on Thursday.
"I think the market's pretty much consolidated the bottom side, and there is a good chance that it will move higher next week," a Tokyo analyst said.
Activity was slow on Friday, however, as traders waited for the release of July US payrolls data, due out, which could provide a clue to how long the US Federal Reserve will keep raising interest rates.
The Fed decision is crucial in shaping the dollar's future outlook, a key factor in the current currency-driven gold market. A potential strike by gold mineworkers in South Africa was also adding to market uncertainty.
The biggest mining union, the National Union of Mineworkers, has said it would launch the first nation-wide strike in 18 years on Sunday.
The strike would paralyse the South African mines of key producers such as AngloGold Aslant, Gold Fields and Harmony Gold.
South Africa's Solidarity Union said on Thursday it would join the strike against gold producers on Monday night.
Gold Fields Chief Executive Officer Ian Cockerel said on Thursday he was hopeful that last minute talks with unions could avert the strike.
"I am hopeful that we can avoid industrial action at this stage, I think it is about 50-50," Cockerel said at the group's results presentation.
Unions nearly went on strike two years ago, but a deal was clinched and a strike averted hours before it was due to start. The market has so far reacted calmly to reports of the latest strike threat, due largely to overall ample supply in the sector.
Platinum was steady and continued to trade a touch below a 15-month high at $917 per ounce. Platinum was quoted at $909/$914 an ounce, compared with $905/$910 in New York.
Silver stood at $7.19/$7.22 an ounce from $7.21/$7.24 in New York. Sister metal palladium was at $190/$195 an ounce from $189/$193.