By Sumit Saha
Gold rose on Friday and was set for a weekly gain after four straight weeks of declines, as weak U.S. jobs data dampened expectations for a near-term Federal Reserve rate hike.
Spot gold TVC:GOLD was up 1.3% at $4,176.29 per ounce by 1006 GMT, after hitting its highest since June 23. Bullion held above its 21-day moving average and is up over 2% for the week so far.
U.S. gold futures TVC:GOLD for August delivery gained 1.53% to $4,188.80/oz.
Data on Thursday showed that U.S. nonfarm payrolls rose by 57,000 last month, below the 110,000 expected by economists in a Reuters poll.
Gold's rally was driven by a sharp slowdown in U.S. hiring last month and the immediate price reaction appears warranted for the time being as markets pare bets for a Fed rate hike in September, said Han Tan, chief market analyst at Bybit.
Traders now see about a 54% chance of a rate increase in September, down from 66% before the data, according to the CME FedWatch tool.
Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold.
The U.S. dollar was on track for its biggest weekly loss since April following the jobs data, making greenback-priced bullion more affordable for holders of other currencies.
World Gold Council data on Thursday showed central banks added a net 41 metric tons of gold to reserves in May.
Central banks are still expected to remain a demand pillar for spot prices over the longer term, although some have been selling their holdings recently to defend currencies, said Tan.
In physical markets, gold demand in India eased this week as prices rebounded, while buying interest in China improved slightly.
Among other metals, spot silver BIST:XAGUSD1! rose 2.6% to $62.58 per ounce, platinum NYMEX:PL1! gained 2.7% to $1,659.85, and palladium BIST:XPDUSD1! climbed 0.7% to $1,277.25.
All three metals were on track for weekly gains.