Spot gold fell 0.3% to $1,799.20 per ounce by 0844 GMT
A key jobs report due later in the day is expected to deliver further signs of growth in the United States
Initial unemployment claims in the US increased to 373,000 last week, after hitting the lowest level since the onset of the Covid-19 pandemic, the Labour Department reported
The labor force participation rate held steady and remained well short of pre-pandemic levels
Spot gold rose 0.1% to $1,778.52 per ounce, by 0535 GMT.
Gold prices edged lower on Thursday, as dollar hovered near a three-month peak, with investors looking ahead to a key US jobs report for clues on what it might mean for monetary policy
Global shares retreated from recent highs yesterday, as Asian markets grew jittery about a resurgence of Covid-19 cases and Western markets awaited US jobs report
This comes as the US economy reopens rapidly
Investors were wary about how shares of major tech firms would react to the G7's agreement on a minimum global corporate tax rate of at least 15%
The Labor Department's closely watched report showed nonfarm payrolls increased by 559,000 jobs last month, helped by vaccinations and a reopening economy
Economists polled by Reuters had forecast 650,000 jobs created in May.
The claims dropped to 406,000, a new low since the Covid-19 pandemic ravaged the labour market early last year, the US Labour Department reported
This comes as the virus wanes and economy further reopens.
Investor focus on Thursday will be on the Labor Department's weekly jobless claims report, considered the most timely indicator of economic health.
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Employment at temporary-help agencies and transportation and warehousing declined sharply.
Global stocks headed for their first weekly gain in three amid a surge in commodity prices, while traders braced for a key US jobs report later on Friday
Economists expect job growth will average at least 700,000 per month in the second and third quarters
Fewer than expected Americans filed new claims for unemployment benefits last week
Investors were spooked this week by rising interest rates, which offset optimism about an economic rebound.