Gold prices moved lower on Friday, as the U.S. dollar recovered from the previous session’s shar losses, but the precious metal remained within close distance of a two-and-a-half month peak amid ongoing U.S. political uncertainty and ahead of a key U.S. jobs report.

On the Comex division of the New York Mercantile Exchange, gold futures for April delivery were down 0.30% at $1,215.75, not far from Thursday’s two-and-a-half month high of $1,224.20.

The April contract ended Thursday’s session 0.92% higher at $1,219.40 an ounce.

Futures were likely to find support at $1,197.90, Wednesday’s low and resistance at $1,224.20.

The greenback recovered from losses posted after Federal Reserve policymakers said on Wednesday that some market-based measures of inflation were still low.

However, the central bank also said that job creations remained solid, inflation had increased and economic confidence was rising.

The comments came after the Fed left interest rates unchanged at the end of its two-day policy meeting, in a widely expected move.

The U.S. dollar has also been under pressure in recent weeks due to U.S. President Donald Trump’s protectionist policies and immigration bans, spurring ongoing uncertainty in global markets.

On Thursday, Trump suggested the possibility of imposing new sanctions on multiple Iranian entities, seeking to increase pressure on Tehran.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 99.88, off Thursday’s two-and-a-half month trough of 99.19.

A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.

Market participants were looking ahead to U.S. nonfarm payrolls data, due later in the day, for further indications on the strength of the jobs market.

Earlier Friday, data showed that China’s Caixin manufacturing purchasing managers’ index ticked down to 51.0 in January from 51.9 the previous month. Analysts had expected the index to slip to 51.8 last month.

The data fueled fresh concerns over a slowdown in China, which is also the world’s biggest gold consumer.