PRECIOUS-Gold rebounds from two-week low; US jobs data in focus

By Anushree Mukherjee and Anmol Choubey

May 2 (Reuters) - Gold gained on Friday as investors rushed to buy the metal a day after its prices hit a two-week low amid receding trade tensions, while the market's focus shifted to the U.S. non-farm payrolls report due later in the day.

Spot gold XAU= rose 0.4% to $3,254.51 an ounce, as of 0610 GMT.

Gold hit its lowest level since mid-April in the previous session and has lost nearly 2% so far this week, the steepest weekly fall since late February.

U.S. gold futures GCcv1 rose 1.3% to $3,263.

"There have been softening stance (on tariffs) and situation has improved a bit, but still there are a lot of uncertainties so gold will still be preferred by investors," said ANZ Commodity Strategist Soni Kumari, adding that every price correction in gold is seen as a buying opportunity.

"If prices continue to decline and approach the $3,000 level, it could attract a lot of investment demand."

Beijing is "evaluating" an offer from Washington to hold talks over U.S. President Donald Trump's 145% tariffs, China's Commerce Ministry said, although it warned U.S not to engage in "extortion and coercion."

Bullion, a safeguard against political and financial turmoil, last soared to a record high of $3,500.05 on April 22.

The market now awaits the U.S. non-farm payrolls report due at 1230 GMT for more cues on the Federal Reserve's policy path.

Non-farm payrolls likely increased by 130,000 jobs in April after rising by 228,000 in March, a Reuters survey showed.

Chinese markets are closed for the Labour Day holiday from May 1-5 and will resume trade on Tuesday, May 6.

Gold started trading in premium in India this week for the first time in five months as demand revived due to a key festival and as prices corrected sharply from last week's record high. GOL/AS

Spot silver XAG= rose 0.5% to $32.57 an ounce, platinum XPT= firmed 1.1% to $968.76 and palladium XPD= gained 1.1% to $950.79.