2020.01.1009:24:00UTC+00Gold Inches Lower As Mideast Worries Fade

Gold prices moved lower on Friday to extend steep losses from the previous session amid easing concerns of an all-out conflict in the Middle East.

The dollar's strength also weighed on the precious metal ahead of the all-important U.S. jobs report due later in the day.

Spot gold slid 0.25 percent to $1,548.50 per ounce, while U.S. gold futures declined 0.3 percent to $1,549.25.

Risk sentiment continues to improve after both the United States and Iran stepped back from the brink of a war.

Iran today denied Western allegations a Ukrainian jetliner that crashed outside Tehran was brought down by an Iranian missile.

The Boeing 737 crashed in the early hours on Wednesday shortly after Tehran launched missiles at U.S. forces in Iraq in response to the killing of a top Iranian general in a U.S. drone strike in Baghdad.

Meanwhile, in another significant development, the U.S. House of Representatives on Thursday approved a resolution that would force President Trump to seek consent from Congress before taking new military action against Iran.

On the data front, the U.S. Labor Department's monthly jobs report is likely to be in focus today, which could give investors additional clues on the health of the world's largest economy and the interest rate outlook.

Economists expect employment to increase by 164,000 jobs in December after an increase of 266,000 jobs in November. The jobless rate is expected to hold at 3.5 percent.

Federal Reserve Vice Chairman Richard Clarida said at an appearance before the Council on Foreign Relations in New York on Thursday that the U.S. economy is in a good place and the central bank isn't about to switch course.