Gold edged higher on Friday as Asian shares fell, adding to its biggest quarterly gain in nearly 30 years, though caution prevailed ahead of the US non-farm payrolls report. Bullion has climbed 1.4 percent so far this week, its best such rise in four weeks, after Federal Reserve Chair Janet Yellen said that the US central bank should proceed only cautiously as it looks to raise interest rates.
Gold is sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets, while boosting the dollar. However, better-than-expected payrolls data could revive expectations of higher US rates, strengthen the dollar and hurt gold. US payrolls due later on Friday are expected to grow by 205,000, according to a Reuters poll. Spot gold gained 0.1 percent to $1,233.30 an ounce by 0705 GMT, following a 0.6 percent rise overnight.