02:11 PM EDT, 04/05/2024 (MT Newswires) -- Gold rose to a fresh record on Friday even as the dollar and treasury yields climbed after the United States added far more new jobs than expected last month as Middle East tensions rise after Iran vowed to retaliate following an attack on its embassy in Syria this week.

Gold for June delivery closed up US$36.90 to settle at US$2,345.40 per ounce.

The rise comes on heightened international tensions, as Iran vowed to retaliate against Israel's Monday strike to Iran's embassy in Syria, which killed senior members of its Islamic Revolutionary Guard Corps. The strike, which Iran blames on Israel and the United States, raises fears of a wider Middle East war as Israel continues its attacks in Gaza as it looks to wipe out the Hamas militant group.

The US Bureau of Labor Statistics released its non-farm payrolls report for March on Friday, reporting a rise of 303,000 new jobs last month, blowing past the consensus expectation for a rise of 200,000 positions, according to Marketwatch.

The surge in hiring last month shows the US economy continues to run hot, raising doubts the Federal Reserve will fulfil market expectations for a 75 basis point cuts to interest rates by year end. Fed chair Jerome Powell said this week the central bank is unlikely to cut rates until "we have greater confidence that inflation is moving sustainably down toward 2 percent".

The dollar rose following the report, making gold more expensive for international buyers, with the ICE dollar index last seen up 0.2 points to 104.32.

Treasury yields were also higher, bearish for gold since it offers no interest. The US two-year note was last seen paying 4.725%, up 6.7 basis points, while the yield on the 10-year note was up 5.6 basis points to 4.373%.