PRECIOUS-Gold dips on caution ahead of key US jobs data

By Ishaan Arora

Jan 8 (Reuters) - Gold fell on Thursday, pressured by a firm dollar, as investors geared up for a key U.S. jobs report later this week to gauge the Federal Reserve's policy path and assess U.S. pressure on Venezuela.

Spot gold XAU= fell 0.4% to $4,435.62 per ounce, as of 0539 GMT. U.S. gold futures GCcv1 for February delivery fell 0.4% to $4,444.40.

"Traders are weighing heightened geopolitical tensions, including U.S. intervention in Venezuela ... against macroeconomic signals from the United States," said Bernard Sin, regional director- Greater China, MKS PAMP.

The dollar held steady near a more than two-week high amid market positioning around several U.S. labour market data releases this week. USD/

Softer jobs data has boosted expectations of further Fed rate cuts, supporting non-interest-bearing bullion, yet sentiment remains balanced with investors mindful of volatility and the potential for profit-taking at higher prices, Sin added.

Bullion is about $110 away from the record high of $4,549.71 hit on December 29, with gains curbed by a firm dollar and profit-taking. USD/

Data on Wednesday showed U.S. job openings dropped to a 14-month low in November while hiring resumed its sluggish tone, pointing to ebbing labor demand.

Investor focus will be on U.S. non-farm payrolls data on Friday for more monetary policy cues. FEDWATCH

The weightage rebalancing on the Bloomberg Commodity Index this week could impact flows due to lower silver and gold target weightages, which allow short-term speculators to book profits, pressuring prices, Kelvin Wong, a senior market analyst at OANDA, said.

The annual BCOM rebalancing is conducted to ensure the index reflects the current state of the global commodity market. This year's window runs from January 9-15.

Spot silver XAG= lost 2.6% to $76.08 per ounce, after hitting an all-time high of $83.62 on December 29.

HSBC expects silver to trade between $58 and $88 in 2026, driven by tight physical supply, robust investment demand, and high gold prices, but warns of a market correction later in the year.

Spot platinum XPT= was down 3.3% to $2,230.90 per ounce, after scaling a record peak of $2,478.50 last Monday.

Palladium XPD= shed 2.8% to $1,715.0 per ounce.