Gold prices rose Friday, bouncing after losses in the previous session, with focus turning to rising tensions in the Middle East and upcoming U.S. inflation data for more cues. 

At 04:25 ET (09:25 GMT), Spot gold rose 1.1% to $4,977.33 an ounce and gold futures for April rose 1% to $4,996.35/oz.

Spot prices tumbled over 3% in the prior session. 

Spot silver rose 4% to $78.703/oz, after wiping out some 10% in the prior session, while spot platinum rose 0.6% to $2,034.65/oz, climbing back above $2,000/oz after logging deep losses in the prior session. 

Safe haven demand helps bullion

Bullion has benefited from some safe haven demand on Friday after a host of reports said Washington planned to deploy a second aircraft carrier -- the USS Gerald R. Ford -- in the Middle East, as nuclear talks with Iran faltered. 

Uncertainty over future U.S. interest rate cuts was a major weight on metal prices, especially after payrolls data showed some signs of resilience in the labor market in January. The dollar came off its weekly lows following Wednesday’s nonfarm payrolls print. 

US CPI data awaited for more cues

The focus is now squarely on U.S. consumer price index inflation data for January, due later on Friday, for more cues on the world’s largest economy.

Labor market strength and inflation are the Federal Reserve’s two biggest considerations for interest rates. 

Markets broadly expect headline and core CPI to have cooled in January. But the January print has consistently surprised to the upside for the past four years, leaving markets on edge over a hawkish reading.

"An unexpected rise in inflation could reduce the Fed’s desire to cut interest rates further, making gold less attractive for investors," ANZ analysts wrote in a note. 

Relatively high interest rates diminish the appeal of non-yielding assets such as gold, while any strength in the dollar also stands to pressure the yellow metal. 

Gold, precious metals set for muted week 

Thursday’s losses saw gold and other precious metals largely reverse a recent rebound, with the yellow metal now trading up marginally for the week. 

Precious metals have struggled for direction since a flash crash in late-January, with uncertainty over U.S. interest rates being a key point of pressure.

Gold’s slump from recent records was initially triggered by U.S. President Donald Trump nominating Kevin Warsh as the next Chairman of the Federal Reserve, with Warsh being viewed as a less dovish pick.

Stronger-than-expected nonfarm payrolls data for January added to concerns over fewer interest rate cuts, while wild price swings in precious metals also dampened their safe haven appeal.