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Gold prices were poised for their biggest weekly jump in four months on Friday, supported by safe-haven demand and expectations that the U.S. Federal Reserve would start cutting interest rates in September as markets await key jobs report for further cues.

Spot gold was up 0.7% at $2,463.45 per ounce, as of 0915 GMT, just $22 shy of the record peak of $2,483.60 scaled on July 17. Bullion is on track for its biggest weekly gain since April 5.

U.S. gold futures climbed 1.1% to $2,507.80.

"Gold prices are buoyed by rising expectations of rate cuts, driven by recent weak U.S. economic data... additionally, fears of a retaliatory strike by Iran and its proxies in the Middle East are bolstering gold's appeal as a safe haven," said Zain Vawda, market analyst at MarketPulse by OANDA.

Bullion is considered a hedge against geopolitical and economic risks and lower rates reduce the opportunity cost of holding the asset.

Investors will monitor the U.S. payrolls report due at 1230 GMT.

Year-end target of $2,500 could be reached sooner if U.S. data weakness continues, said Ole Hansen, head of commodity strategy at Saxo Bank.

This, along with speculation that the Fed is going to cut rates soon, geopolitical tensions, rising debt concerns, and renewed demand from central banks and from ETF investors who will see the lower funding costs as a reason to accumulate gold again, Hansen added.

Fed 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.

UBS expects gold purchases by central banks to remain strong.

"Central bank purchases should be around 1,000 tons this year, which is double the usual amount," they said in a note.

Spot silver added 1.2% to $28.9 per ounce, platinum rose 1.4% to $972.35 and palladium gained 0.7% to $911.86. All three metals were headed for weekly gains.