2023.07.0709:56:00UTC+00Gold Inches Higher In Cautious Trade Ahead Of US Jobs Data

Gold prices rose slightly on Friday but were on track for a fourth consecutive weekly loss, as upbeat U.S. private payrolls and service sector data added to concerns about the outlook for interest rates following Wednesday's hawkish Federal Reserve minutes.

Spot gold edged up 0.3 percent to $1,916.04 per ounce, while U.S. gold futures were up 0.3 percent at $1,921.90.

U.S. private-sector payrolls expanded by 497000 in June, according to the payroll-services firm ADP on Thursday - coming in well ahead of the downwardly revised 267,000 gain in May and the 220,000 consensus estimate.

The U.S. services sector also grew faster than expected in June, raising fears of more interest rate hikes ahead by the Federal Reserve to keep inflation under control.

Signs of a resilient U.S. economy supported the dollar and lifted bond yields, weighing on bullion prices.

The dollar held steady against major currencies while benchmark U.S. 10-year Treasury yields were on track to post their biggest weekly rise since mid-May.

Traders await the U.S. monthly jobs report later in the day for additional clues on the economic and rate outlook.