Updates for U.S. morning hours

By Ashitha Shivaprasad

May 8 (Reuters) - Gold extended gains on Friday following a stronger-than-expected jobs report, with prices also heading for a weekly rise as optimism over a potential end to the Iran conflict helped ease concerns about inflation and elevated interest rates.

Spot gold XAU= was up 0.8% at $4,723.28 per ounce, as of 1322 GMT. Bullion has gained 2.4% so far this week.

U.S. gold futures GCcv1 rose 0.5% to $4,733.00.

Data showed that U.S. employment increased more than expected in April while the unemployment rate held steady at 4.3%, pointing to labor market resilience.

"Traditionally, we would think that a stronger-than-expected jobs number would strengthen the dollar and apply some pressure to gold. Yet, we did not really see that happen today," said David Meger, director of metals trading at High Ridge Futures.

"At this point, gold is trading like a risk asset rather than a safe-haven. The rebound in gold is tied to the prospects of de-escalation in Iran, with energy prices coming down, we're seeing the prospects for Fed rate cuts increase down the road."

Gold, typically seen as a safe haven during periods of global turmoil, faces pressure from rising interest rates due to its non-yielding nature.

According to the CME FedWatch tool, the market now sees about a 14% chance of a rate hike this year, down from around 22% the previous day.

U.S. and Iranian forces clashed in the Gulf and the United Arab Emirates came under renewed attack, but President Donald Trump said a ceasefire was still holding despite the flare-up.

Meanwhile, gold demand in India was muted this week, as a price recovery prompted potential buyers to postpone purchases, while China premiums remained steady on safe-haven demand. GOL/AS

Spot silver XAG= rose 3.1% to $80.88 an ounce, platinum XPT= gained 0.2% to $2,026.80, both headed for a weekly gain.

Palladium XPD= was down 0.3% at $1,476.18 but down nearly 3% for the week.