Gold was set to post its biggest weekly decline in six weeks on Friday as the US dollar firmed ahead of the US non-farm payrolls report that could provide clues about the Federal Reserve's monetary policy. A strong payrolls number could prompt the Fed to raise rates sooner than later, hurting non-interest paying gold. The metal has rallied nearly 21 percent this year on expectations that the Fed will slow the pace of rate hikes.
Economists polled by Reuters forecast US employers likely added 202,000 workers in April following a 215,000 increase in March, with the jobless rate holding at 5 percent. Spot gold was little changed at $1,278.63 an ounce by 0700 GMT. The metal has closed lower every session this week despite hitting a 15-month top of $1,303.60 on Monday. For the week, gold was set for a 1 percent decline, its biggest weekly drop since the week ended March 25.

Copyright Reuters, 2016

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