Spot gold hovered around $1,370 on Friday, as investors wait for a key U.S. employment report due later in the day for clues on the health of the economy, as the dollar held firm.
Some economists raised their forecast, after Thursday's ADP report showed a surprise jump in private jobs number for December. A Reuters poll showed that payrolls likely increased by 175,000 in December, revised up from 140,000.
"Gold is probably consolidating ahead of the non-farm payrolls data," said Darren Heathcote, head of trading at Investec Australia.
"If we see a weaker number, it would be negative for the dollar and positive for gold. Unless the number is much stronger than expected, we probably won't see much move in gold prices."
But some analysts said the non-farm payrolls number is not always correlated with the ADP figures, and the dollar could face some downside risk if the data turned out not as strong.
The dollar held to its gains on Friday, while the euro fell to its lowest in nearly four months against the dollar on growing worries about sovereign debt problems spreading to the wider euro zone.
Spot gold was little changed at $1,370.35 an ounce by 0344 GMT, posing for a 3.5 percent loss from the previous week, its largest weekly loss since late May.
U.S. gold futures was little changed at $1,370.4.
A bearish target at $1,355 per ounce is unchanged for spot gold as a downward wave "5" has not completed, said Wang Tao, a Reuters market analyst.
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