Gold was headed for its first weekly drop in four on Friday, as reduced bets of an early interest rate cut in the U.S. boosted the dollar and bond yields, while investors awaited a key employment report.
Spot gold was up 0.1% at $2,045.57 U.S. per ounce. It has declined about 0.8% so far in the week.
U.S. gold futures rose 0.1% to $2,052.40.
The dollar index rose 0.1% against its rivals and was headed for its best week since July, making bullion more expensive for other currency holders.
Market participants have tempered their expectations of monetary policy easing by the Federal Reserve, pricing in about a 65% chance of a rate cut by March, compared with a 90% chance a week ago.
Investors now await the U.S. non-farm payrolls report due at 8:30 a.m. EST for further direction on rate outlook.
Spot silver rose 0.5% to $23.11 U.S. per ounce, while platinum slipped 0.7% to $950.12 U.S.
Palladium rose 0.6% to $1,042.68 U.S. after an eight-session slide.
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