Gold prices were on track on Friday for their biggest weekly rise since early April, buoyed by hopes the U.S. Federal Reserve will not raise interest rates at its policy meeting this month, which also weighed on the dollar and bond yields.
Spot gold was up 0.1% at $1,978.77 per ounce by 12:06 GMT. U.S. gold futures were mostly flat at $1,996.00.
Bullion has gained 1.7% so far this week, heading for its best week since the one ended April 7.
With the resolution of uncertainty around the U.S. debt ceiling, "investors are now taking a pause to see what's going to happen with the non-farm payrolls" which are due at 1230 GMT, said ActivTrades senior analyst Ricardo Evangelista.
The U.S. dollar index and 10-year Treasury yields were both headed for their worst weeks since mid-March, making dollar-priced, zero interest-bearing bullion more attractive.
Gold prices could move a little higher from here as the Fed is expected to keep policy on hold in June, said Edward Meir, a metals analyst at Marex.
Philadelphia Fed chief Patrick Harker said on Thursday that U.S. central bankers should not raise interest rates at their next meeting.
Gold, which suffers when rates are higher, found support as markets scaled back expectations to a 24% chance of the Fed hiking rates in June, compared to a 64% chance seen one week ago.
Markets now see a 76% chance of the Fed keeping rates unchanged this month.
But, "if the jobs report today surprises to the upside, we should expect some losses in gold prices," Evangelista said.
Spot silver ticked down 0.1% to $23.89 per ounce, also headed for a weekly gain.
Platinum fell 0.1% to $1,005.71, and palladium advanced 1.1% to $1,411.49, with both set for weekly losses.
(Reporting by Deep Vakil and Arundhati Sarkar in Bengaluru; Editing by Mark Potter and Nick Macfie)