Subdued dollar lifts gold

LONDON, Sept 3 (Reuters): Gold prices firmed on Friday, supported by a weaker dollar ahead of the much-awaited US August non-farm payrolls report, which could influence the Federal Reserve's plans on tapering asset purchases.

Spot gold had advanced 0.1% to $1,811.60 per ounce by 0935 GMT on the day, but was down 0.2% for the week.

US gold futures rose 0.1% to $1,813.60.

"The market is consolidating ahead of important non-farm payrolls report. The consensus is somewhere around 760,000 jobs and a figure below 650,000 would be very bullish for gold," independent analyst Ross Norman said.

The Labour Department's non-farm payrolls report is due at 1230 GMT, while a Reuters poll forecast 728,000 jobs were created in August.

The dollar index languished near a one-month low, bolstering gold's appeal for those holding other currencies.

Fed Chair Jerome Powell said last week that if job growth continues, the central bank could start to cut its asset purchases this year, but would remain cautious on raising interest rates.

While gold is considered a hedge against inflation and currency debasement, lower interest rates reduce the opportunity cost of holding non-yielding bullion.

In physical markets, demand for gold coins and bars remains good, "but institutional buying at the ETF level remains relatively lacklustre and while central bank demand is positive, it is perhaps not as strong as in previous years," Norman said.

Holdings of the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were near their lowest since April 2020.

Australia's Perth Mint posted a dip in August gold coin sales.

Elsewhere, silver rose 0.4% to $23.98 per ounce. Platinum was 0.2% higher at $1,000.43, while palladium climbed 0.5% to $2,412.81.