• Gold up 3% this week after hitting a record high on Wednesday
• US non-farm payrolls data due at 1230 GMT
• Fed officials consider rate cuts due to labour market concerns

Sept 5 (Reuters) - Gold prices edged higher on Friday and were on track for their best weekly gain in three months, as expectations of a Federal Reserve rate cut bolstered bullion's appeal and investors awaited U.S. non-farm payrolls data due later in the day.

Spot gold was up 0.1% at $3,548.49 per ounce, as of 0934 GMT. Bullion has risen 3% so far this week.

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U.S. gold futures for December delivery were steady at $3,605.10.

U.S. jobless claims rose more than expected last week, while the ADP National Employment Report showed private payrolls grew below forecasts in August, both signalling further signs of a weakening labour market.

Investors are now focused on the U.S. non-farm payrolls report, due at 1230 GMT, which is expected to show an increase of 75,000 jobs in August, according to a Reuters poll, compared with 73,000 in July.

Gold's short-term direction hinges on the U.S. jobs report and its influence on rate-cut expectations, bond yields, and the dollar, with a weak NFP print driving prices toward $3,650, while support at $3,450 to $3,500 remains key, said Ole Hansen, Saxo Bank's head of commodity strategy.

Several Federal Reserve officials speaking earlier this week pointed to labour market concerns as a key factor supporting the case for rate cuts.

Traders anticipate the Fed will deliver its first rate cut of the year, lowering interest rates by 25 basis points at the conclusion of its two-day policy meeting starting on September 17. FEDWATCH

Gold, which hit a record high of $3,578.50 on Wednesday, offers no yield and typically performs well in a low-interest-rate environment.

"The combination of lower funding costs, Fed independence concerns, geopolitical risks, a steepening yield curve spiced with a weaker dollar all points to further gains in precious metals," Hansen said.

Elsewhere, spot silver rose 0.2% to $40.76 per ounce and was heading for its third straight weekly gain. Platinum gained 1% to $1,381.17 and palladium was down 0.7% at $1,119.23.

https://www.reuters.com/world/india/gold-heads-best-week-three-months-ahead-us-jobs-data-2025-09-05/