PRECIOUS-Gold edges lower as US jobs data dents rate-cut expectations

Nov 6 (Reuters) - Gold dipped on Thursday after stronger-than-expected private U.S. payrolls data dented expectations of another interest rate cut by the U.S. Federal Reserve in December.

FUNDAMENTALS

Spot gold XAU= lost 0.3% to $3,971.08 per ounce by 0144 GMT.

U.S. gold futures GCcv1 for December delivery lost 0.3% to $3,979.70 per ounce.

The dollar .DXY held just below a four-month high reached in the previous session, with a recovery in appetite for riskier assets pulling it off recent peaks. USD/

Menawhile, benchmark U.S. 10-year yields US10YT=RR held just below their highest in nearly a month.

The U.S. Federal Reserve cut interest rates last week and Chair Jerome Powell suggested it might be the last reduction in borrowing costs for the year.

U.S. private employment increased by 42,000 jobs last month, above Reuters' estimate of a 28,000 rise, the ADP employment report showed on Wednesday. A strong jobs market typically makes interest rate cuts less likely and can keep rates higher for longer.

A congressional impasse has resulted in what is now the longest-ever U.S. government shutdown, which has forced investors and the data-dependent Fed to rely on private sector indicators.

Non-yielding gold tends to do well in a low-interest-rate environment and during times of economic uncertainty.

Bullion hit a record high of $4,381.21 on October 20, but it has fallen close to 10% since.

Major stock indexes gained on Wednesday as corporate earnings and U.S. private payrolls data were stronger than expected. MKTS/GLOB

Elsewhere, U.S. Supreme Court justices raised doubts on Wednesday over the legality of President Donald Trump's sweeping tariffs in a case with implications for the global economy.

Elsewhere, spot silver XAG= was down 0.6% at $47.77 per ounce, platinum XPT= slid 0.8% to $1,549.21 and palladium XPD= lost 0.7% at $1,408.74.