US dollar prices quoted for gold bullion on the wholesale market rose to $1,596 an ounce during Friday morning's London trading, recovering some ground following three days of losses, as stock markets also rebounded ahead of the release of US nonfarm payrolls data later today.
Silver bullion climbed back above $27.30 per ounce, in line with where it closed two weeks ago, while other industrial commodities also edged higher.
Heading into the weekend, gold bullion looked set for a 1.7% weekly loss by Friday lunchtime in London. Gold prices fell sharply on Wednesday following a better-than-expected ADP Employment report, a privately-produced precursor to today's official nonfarms figure.
Gold then fell again Thursday along with the euro, after the European Central Bank opted to leave interest rates on hold and, like the Federal Reserve a day earlier, announced no new stimulus measures.
"While this week's price behavior highlights that investors are rather quick to get out, it's important to remember that gold is back to levels it was trading at just last week," says a note from UBS.
"Our more positive outlook...still stands, especially with the potential for central banks to act remaining elevated."
The European Central Bank voted to leave interest rates on hold at a record low of 0.75% Thursday. ECB President Mario Draghi said last week that his institution would do "whatever it takes to preserve the Euro" – comments widely-taken to mean the ECB could intervene in sovereign bond markets with the aim of reducing borrowing costs.
At Thursday's press conference however few specifics were given as to what actions the ECB might take.
"Various committees will now review the various non-standard policy options," Draghi told reporters.
"Policymakers in the euro area need to push ahead with fiscal consolidation, structural reform and European institution-building with great determination."
Draghi acknowledged that "implementation [of such measures] takes time and financial markets often only adjust once success becomes clearly visible", adding that governments need to "stand ready to activate [euro-zone bailout funds] the EFSF/ESM in the bond market."
The ECB chief expressed surprise when asked whether the European Stability Mechanism, the permanent bailout fund being phased in to replace the European Financial Stability Facility, should be granted a banking license to enable it to borrow from the ECB and this leverage the planned €500 billion lending capacity the ESM will eventually have.
"I have said at least twice," replied Draghi, "that the current design of the ESM does not allow it to be recognized as a suitable counterparty [for the ECB]."
Responding to a question about ECB Governing Council member Jens Weidmann, president of Germany's Bundesbank, Draghi agreed that Weidmann and the Bundesbank "have their reservations about programs that envisage buying bonds."
"Although [Governing Council members] are here in a personal capacity and we should never forget that," he added.