Gold is on its way to its first weekly decline in a month ahead of US data

Gold is heading towards recording its first weekly decline in four weeks after the rise of the dollar, but prices stabilized on Friday as markets awaited key data on US jobs for signs that the Federal Reserve may cut interest rates in early March.

Gold increased 0.1 percent to $2,030.32 per ounce by 0750 GMT, but fell about two percent during the week. US gold futures settled at $2047.10.

Gold rose to its highest level ever at $2,135.40 on Monday due to bets on the Reserve Board cutting interest rates, before falling more than $100 due to uncertainty about the timing of the cut.

The dollar index is on its way to ending a three-week losing streak, making gold priced in the US currency more expensive for holders of other currencies.

Kelvin Wong, chief market analyst for the Asia-Pacific region at OANDA, said that gold remains supported above the $2006 level per ounce, but stronger than expected jobs data may put this support level at risk.

Data this week indicated that the US labor market is gradually losing momentum as rising borrowing costs suppress demand in the broader economy.

The US November non-farm payrolls report is scheduled to be released at 1330 GMT.

As for other precious metals, silver rose 0.1 percent to $23.81 per ounce. Platinum increased 0.9 percent to $915.19. Palladium rose 0.6 percent to $975.20 an ounce.