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Gold held steady on Friday, but was on track for its biggest weekly decline since March on concerns about early tapering by the Federal Reserve.

Spot gold was little changed at $1,870.92 per ounce, after hitting its lowest since May 19 at $1,855.59. U.S. gold futures were marginally lower at $1,872.75 per ounce.

The dollar hit a three-week high and U.S. 10-year Treasury yields rose above 1.6 percent after ADP private payrolls surged in May and U.S weekly jobless claims fell below 400,000 last week, indicating a strengthening of the labor market.

Separate data from the Institute for Supply Management showed that U.S. service sector activity hit a record high in May.

The all-important U.S. nonfarm payrolls report due later in the day might offer more clues on labor market recovery and the direction of monetary policy.

Economists expect the report to show employment jumped by 664,000 jobs in May after climbing by 266,000 jobs in April. The unemployment rate is expected to dip to 5.9 percent from 6.1 percent.

Amid increasing bets over possible tapering of stimulus, market participants also looked ahead to the Fed and the European Central Bank policy meetings next week for directional cues.


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