Gold prices shot up on 6 September on expectations that the US would stay the course on its $85bn a month bond buying stimulus.

Spot gold rose 1.5% and hovered around $1,387.46 (£887.46, €1052.62) an ounce. However, gold prices ended 0.5% lower for the week as a whole owing to delays in the planned military intervention by the US in Syria.

US gold futures for delivery in December hovered at $1,386.50 an ounce, preliminary Reuters data shows.

Disappointing US nonfarm payrolls data may pour cold water on the US Federal Reserve's planned reduction of its asset buys. There were 169,000 jobs created in the US during August, with the unemployment rate remaining little unchanged from 7.3% the previous month.

The Bureau of Labour Statistics said US job creation averaged 184,000 per month over the prior 12 months, leaving the August reading short of expectations at a time when the economy looks to be on the up.

The data suggests "the Fed does not have room to pull back on its stimulus program," Gene McGillian, energy analyst with Tradition Energy in Stamford, Connecticut told Reuters. This is largely seen as supporting commodity prices.

The Fed's FOMC meets on 17 September, when it could decide on tapering its bond buys.

Gold continues to remain a safe investment hedge amid uncertainty surrounding a possible US-led military strike on Syria.

US President Barack Obama has gained the support of key US senators for a military strike against Syrian President Bashar al-Assad's regime. The proposal, pushing for military action, will be put to the vote on 9 September when Congress reconvenes.

Syria Strike Costs
Chart and factbox outlining military hardware costs which could be incurred by the U.S. from a strike on Syria (Reuters).