Gold steadied after rising more than 2% on Thursday, following comments from Federal Reserve Governor Christopher Waller that lowered expectations for an imminent interest-rate hike. Spot bullion traded around $4,480 an ounce and was poised for a modest weekly gain after a sharp drop on Tuesday and subsequent rebound. Waller indicated he would support holding rates steady if inflation continues to ease, noting his decision would be 'heavily influenced' by upcoming August inflation data.

He added that while he leans toward pausing, a hot inflation reading could prompt a rate hike, though recent data suggest signs of disinflation. Traders have reduced the probability of a September rate hike to about even, down from roughly 70% earlier in the week. Lower rate expectations typically benefit gold, which yields no interest.

The metal also gained from rising expectations of yen intervention, which weakened the dollar. The yen strengthened nearly 2% on Thursday, reversing a month-long decline, as bets increased on a Bank of Japan rate hike. The dollar fell to its lowest level since May, making gold more attractive for holders of other currencies.

Traders are now focusing on Friday’s payrolls report and next week’s inflation data for further policy clues. At 8:22 a.m. in Singapore, spot gold was 0.1% higher at $4,478.17 an ounce. Silver rose 0.1% to $66.90 an ounce, while platinum and palladium were little changed.

The Bloomberg Dollar Spot Index stabilized after a 0.6% drop the prior session.