Aug 9 (Reuters) - Gold eased on Friday as the latest jobs data eased concerns on U.S. recession, with prices set for a weekly decline after a global sell-off earlier in the week led to big losses in bullion, while traders awaited further clues on U.S. rate cuts.
Spot gold was down 0.1% to $2,425.34 per ounce, as of 1155 GMT. U.S. gold futures rose 0.1% at $2,464.60.
Bullion was on track for its biggest weekly decline since June 7. Prices fell as much as 3% on Monday after investors liquidated positions in tandem with a broader equities sell-off.
"A resurgence in risk appetite following the release of positive U.S. labor figures and higher-than-expected Chinese inflation numbers helped to strengthen the dollar and demand for risk-related assets, in a dynamic that penalizes the non-yielding precious metal," said Ricardo Evangelista, senior analyst at ActivTrades.
U.S. Treasury yields rose after data on Thursday showed U.S. jobless claims fell more than expected last week, suggesting fears the labour market is unravelling were overblown. The dollar hovered close to a one-week high, making bullion more expensive.
"There is increasing expectations that the Fed will cut interest rates at their September meeting and one senses some frustration in the markets that the higher-for-longer narrative is long beyond its sell-by date," said independent analyst Ross Norman.
Markets see a 100% chance of a U.S. cut rate in September, according to the CME FedWatch Tool.
Investor focus shifts to the U.S. consumer price index (CPI) due next week for further insights into the Fed's policy path.
"We assume that gold will remain in demand against the backdrop of the Middle East tensions," Commerzbank said in a note.
Spot silver was down 0.3% to $27.49 per ounce and platinum fell 0.4% to $927.05. Both metals were poised for weekly losses.
Palladium gained 0.1% to $923.83, set for a weekly gain despite hitting 2017 lows earlier this week.
Reporting by Sherin Elizabeth Varghese and Daksh Grover in Bengaluru; Editing by Vijay Kishore and Mrigank Dhaniwala
