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Gold prices firmed on Friday and were set for a weekly gain, driven by prospects of a Fed rate cut in September and rising tensions in the Middle East, while market participants awaited U.S. nonfarm payrolls data for further direction.

Gold prices firmed on Friday and were set for a weekly gain, driven by prospects of a Fed rate cut in September and rising tensions in the Middle East, while market participants awaited U.S. nonfarm payrolls data for further direction.

Spot gold was up 0.2% at $2,451.07 per ounce, as of 0243 GMT, and has gained more than 2% for the week. U.S. gold futures climbed 0.6% to $2,495.60.

Investors will keep a tab on the U.S. payrolls report due at 1230 GMT for further cues on the monetary policy path.

Federal Reserve Chair Jerome Powell said on Wednesday that interest rates could be cut as soon as September if the U.S. economy follows its expected path.

Trader bets for a super-sized 50-basis-point rate cut in September jumped to 28.5% from 11.8% earlier this week, according to the CME Group's FedWatch tool.

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