Gold prices gained on Friday but were poised for a second straight weekly decline as investors remained cautious ahead of the US non-farm payrolls data that could shape the Federal Reserve's rate cut path.
Spot gold gained 0.3% to $2,640.61 per ounce by 0933 GMT, while US gold futures climbed 0.5% to $2,662.60.
Bullion has lost about 0.5% so far this week, after hitting its lowest since Nov. 26 earlier in the session.
"The mood among short-term and technical traders in the gold market has clearly cooled and we struggle to see a trigger that would lead to a massive short-term improvement in sentiment," said Carsten Menke, an analyst at Julius Baer.
"As such, we believe today's price move does not reflect more than the usual volatility with the weekly trend being an expression of the ongoing consolidation." Markets now await the release of US non-farm payrolls which is due at 1330 GMT, which likely increased 200,000 jobs in the month after rising by only 12,000 in October.
"US employment growth will probably rebound this month and will broadly be in line with analyst expectations," said Hamad Hussain, assistant climate and commodities economist at Capital Economics.
"That said, given that the payrolls data have been volatile in recent months, there is plenty of scope for a surprise which would move gold prices." Fed Chair Jerome Powell on Wednesday said the US economy was stronger than it had appeared in September and suggested a more cautious stance towards interest rate cuts.
After two US interest rate cuts so far this year, traders are pricing in a 67% chance of a 25-basis-point cut at the Fed's Dec. 17-18 meeting, according to the CME Group's FedWatch Tool. Lower interest rates increases the appeal of holding gold.
Spot silver fell 0.3% to $31.26 per ounce but is up more than 2% for the week.
Platinum eased 0.4% to $934.70 and palladium rose 0.9% to $972.01. Both metals are set for second straight weekly losses.