Gold shatters record roof, heads for third straight weekly gain on buying momentum

U.S. gold futures edged 1.4% higher to $2,339.70.

There are too many capital inflows and everybody is chasing the market high, which is helping gold prices along with strong central bank purchases and speculative buying, said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.

Meanwhile, nonfarm payrolls increased by 303,000 jobs last month, the Labor Department said in its employment report on Friday. Economists polled by Reuters had forecast 200,000 jobs, with estimates ranging from 150,000 to 250,000.

Fed Chair Jerome Powell reiterated on Wednesday that the central bank was in no rush to reduce borrowing costs after leaving its policy rate unchanged in the current 5.25%-5.50% range last month.

"At some point later this year with inflationary concerns remaining somewhat sticky, that remains an underlying positive environment for the gold market," said David Meger, director of metals trading at High Ridge Futures.

Traders are currently pricing in an about 59% chance that the Fed will cut rates in June.

Lower interest rates reduce the opportunity cost of holding bullion.

"Some folks might have also had some short positions covered and then technicians took it over the $2,300 resistance level," said Bart Melek, head of commodity strategies at TD Securities.

Spot gained 1.4% to $27.30 per ounce. Platinum was steady at $925.15. Both were on track for a weekly rise.

Palladium dipped 1.7% to $1,003.50 and was headed for a weekly decline.