Spot gold inched up 0.1 per cent to $2,030.09 per ounce and U.S. gold futures were flat at $2,046.50
Gold prices were on track for their first weekly decline in four after the dollar strengthened, although they held steady on Friday as markets looked ahead to key U.S. jobs data to gauge the chance of a rate cut by the Fed as early as March.
Spot gold inched up 0.1 per cent to $2,030.09 per ounce by 0610 GMT. Bullion, however, has dropped around 2 per cent for the week so far. U.S. gold futures were flat at $2,046.50.
Bullion touched an all-time high of $2,135.40 on Monday on bets for a rate cut by the Federal Reserve, before shedding more than $100 on uncertainty over the timing of the expected cut.
The dollar index was on track to snap a three-week losing streak, making greenback-priced gold more expensive for holders of other currencies.
Gold remains well-supported above $2,006 per ounce level, but a stronger-than-expected payrolls data could put this support level in jeopardy, according to Kelvin Wong, senior market analyst for Asia Pacific at OANDA.
Data this week suggested that the U.S. labor market was gradually losing momentum as higher borrowing costs cut demand in the wider economy.
The U.S. non-farm payrolls report for November is due at 1330 GMT, which should show that employers added 180,000 jobs last month.
Markets are pricing in a 59 per cent possibility of a U.S. rate cut as soon as March, CME’s FedWatch Tool showed, but a Reuters poll saw rates unchanged until at least July.
Lower interest rates tend to support non-interest-bearing bullion.
