Gold (GC=F)

Gold was modestly higher in early trade on Friday after continuing its sell off from the record high of $3,500 hit early last week. It came within a couple of dollars of $3,260.

This comes ahead of the US non-farm payrolls report due later today, after prices touched a two-week low in the previous session. Signs of easing US-China trade tensions has kept the safe-haven metal on track for its second weekly fall.

Non-farm payrolls likely increased by 130,000 jobs in April after rising by 228,000 in March, a Reuters survey showed.

"Gold still needs to blow off some of the froth from the last leg of its strong rally," David Morrison, senior market analyst at FCA regulated fintech and financial services provider Trade Nation, said.

"But it’s possible it could achieve this, and reset the MACD to more neutral levels, through an extended period of consolidation. If it can manage this without another significant leg down, long-term gold bulls should happily take that as a victory.

"Such a move has the potential to set the scene for a fresh leg of the rally, which, given sufficient momentum, could take it to fresh all-time highs. The alternative is that the high is already in, and any rallies should be used as opportunities for existing bulls to cut their exposure. Unfortunately, it’s just not possible to say with any confidence which is the most likely outcome."

Elsewhere, spot silver edged 0.1% higher to $32.42 an ounce, platinum rose 0.8% to $966.40 and palladium eased 0.2% to $939.

Pound (GBPUSD=X, GBPEUR=X)

The pound edged higher against the US dollar on Friday as American jobs figures are expected to show a drop in employment amid Donald Trump’s tariff war.

Sterling was up 0.1% to $1.3296 at the time of writing, although it fell 0.4% against the euro, which was worth 85.3p. The dollar fell despite signals that US-China trade talks could begin soon.

The pound US Dollar exchange rate may rally if April's payroll figures point to a cooling US labour market and stokes Federal Reserve interest rate cut expectations.

The US Dollar Index (DX-Y.NYB), which tracks the greenback’s value against six major currencies, corrects to near 99.85 from an over two-week high of 100.38.

Oil (BZ=F, CL=F)

Oil prices have fallen sharply from the record heights they hit after Russia’s invasion of Ukraine caused a global energy crisis. Brent crude, the international benchmark, was up 0.2% above $62 a barrel, although it remains on track for a weekly loss of more than 6%.

It comes as Beijing said it is assessing an offer of talks from the US as the world’s two largest economies negotiate their hefty tit-for-tat tariffs.