Focus on Friday39;s release of U.S. employment data
Gold up over 2 so far this week
Silver, platinum set for fourth straight weekly gain

April 6 Reuters Gold prices pared some gains on Thursday ahead of a key U.S. jobs report, but bullion was still on track for a weekly rise as weak U.S. economic data spurred worries of a slowdown.

Spot gold was down 0.6 to 2,009.07 per ounce by 253 p.m. EDT 1853 GMT, while U.S. gold futures for June delivery settled 0.5 lower at 2,026.40.

Safehaven bullion has risen more than 2 so far this week, surpassing the key 2,000 level, as oil prices surged after the shock OPEC output cuts, while data showed a slower U.S. services sector and fewer job openings.

The U.S. Federal Reserve is in a bind, as higher interest rates could trigger a recession but a pause in the monetary tightening risks embedding inflation, with either scenario positive for gold, said Paul Wong, market strategist at Sprott.

It is a long weekend for most major markets, so I would expect low volume, not meaningful price action today.

Also supporting prices this week, the dollar index hovered around twomonth lows, while benchmark Treasury yields hit a sevenmonth trough.

Gold is seen as an inflation hedge but lower rates decrease the opportunity cost of holding zeroyield bullion.

The Fed should stick to raising interest rates to lower inflation while the labor market remains strong, St. Louis Fed President James Bullard said.

However, more data reinforcing the…