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Gold price (XAU/USD) holds steady near $4,080 during the early Asian session on Friday. The upside for the precious metal might be limited as strong US jobs data dims Federal Reserve (Fed) rate cut expectations. Traders brace for the preliminary reading of the US S&P Global Purchasing Managers Index (PMI) and Michigan Consumer Sentiment Index report, which will be released later on Friday. 

Nonfarm Payrolls (NFP) rose by 119,000 jobs in September after a downwardly revised 4,000 drop in August, according to the Bureau of Labor Statistics (BLS) on Thursday. This reading came in better than the estimation of 50,000. The Unemployment Rate in the US climbed to 4.4% in September from 4.3% in August. The report was delayed due to the US government shutdown. 

Investors scaled back expectations for an interest rate cut from the Fed next month following a solid job report. This, in turn, lifts the US Dollar (USD) and weighs on the USD-denominated commodity price. Markets are now pricing in nearly a 39% probability of a 25 basis points (bps) rate cut at the Fed's December meeting, according to the CME FedWatch tool.

"This (data) essentially confirms what the Fed discussed in October — a slowing yet stable jobs market. A December rate cut now appears increasingly unlikely," adding pressure to gold, said Peter Grant, vice president and senior metals strategist at Zaner Metals.

Traders will take more cues from the US S&P Global PMI reports later on Friday. Any signs of weakness in the US economy could boost the Gold price, a traditional safe-haven asset. Furthermore, ongoing gold buying from major central banks also supports the yellow metal. The People's Bank of China (PBOC) added 1.2 tonnes of gold in September and reported a purchase for the 12th consecutive month in October, officials said. 

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