Sept 5 (Reuters) - Gold prices were heading for their strongest weekly gain in three months on Friday, having vaulted to a record high above $3,500 per ounce, with traders now on alert for a key U.S. jobs report that could strengthen expectations for a bullion-supportive Federal Reserve interest rate cut.
The U.S. non-farm payrolls report is due at 1230 GMT. With traders largely pricing in a September Fed rate cut, the data could cement those expectations further.
Spot gold rose 0.3% to $3,554.80 per ounce as of 11:13 GMT. Prices are up 3% so far this week, having hit a record $3,578.50 on Wednesday, steered by a potent mix of rate cut bets and safe-haven demand driven by global geopolitical and economic uncertainty.
U.S. gold futures for December delivery gained 0.1% at $3,610.30.
"The strength in gold can last with new highs possible this and next year, although maybe for the moment we've seen the highs and may consolidate now because some profit-taking would be expected at these levels," Philip Newman, managing director at consultancy Metals Focus, told Reuters.
Analysts have also flagged the independence of the Fed as a key factor in shaping gold’s trajectory - an issue thrust into the spotlight after U.S. President Donald Trump attempted to fire Fed Governor Lisa Cook and put repeated pressure on the central bank to slash rates.
"Geopolitics are a bit quieter now, but markets are very mindful of Trump and weaponisation of import tariffs, waiting to see if he is going to react on improved relations between China and India," Newman added.
Meanwhile, Trump said India and Russia appear to have been "lost" to China, following the Shanghai Cooperation Organisation meeting in Beijing this week where their leaders stood alongside Chinese President Xi Jinping.
Bullion, which doesn’t pay interest, tends to shine when rates are low and uncertainty is high, making it a go-to asset for investors seeking safety.
Among other metals, spot silver rose 0.2% to $40.77 per ounce and was heading for its third straight weekly gain. Platinum firmed 0.9% to $1,380.22, while palladium was down 0.7% at $1,119.69.
Reporting by Anmol Choubey, Ashitha Shivaprasad in Bengaluru and Polina Devitt in London; Editing by Hugh Lawson
